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Rediff.com  » Business » Global food prices rose 1.4% in September

Global food prices rose 1.4% in September

October 04, 2012 18:18 IST

FoodgrainGlobal food prices rose by 1.4 per cent in September because of strengthening of cereals, dairy and meat prices, United Nation's body FAO said on Thursday.

"Following two months of stability, the FAO Food Price Index rose slightly in September 2012, up 1.4 per cent, or 3 points, from its level in August," FAO said in a statement.

FAO's Food Price Index is a monthly measure of change in international prices of 55 commodities.

"The rise reflected strengthening dairy and meat prices and more contained increases for cereals. Prices of sugar and oils, on the other hand, fell," it added.

The FFPI climbed 216 points in September from 213 points in August 2012.

Presently, it stands 22 points below its peak of 238 points in February 2011 and 9 points below its level of 225 points in September 2011, it said.

"While shrinking maize export availabilities and high maize prices have been leading cereal markets in recent months, tightening wheat supplies have also become a concern," FAO said.

However, global wheat prices fell towards the second half of the month, following announcement by the Russian Federation that it would not impose restrictions on exports, it added.

The UN agency revised its global cereal output forecast. World cereal production in 2012 is now forecast at 2,286 million tonnes, slightly down from the 2,295 million tonnes estimated in September.

"At the currently forecast level, world cereal production in 2012 would be 2.6 per cent down from the previous year's record crop but close to the second largest in 2008.

"The overall decrease comprises a 5.2 per cent reduction in wheat production and a 2.3 per cent reduction for coarse grains," FAO said.

FAO Meat Price Index averaged 175 points in September, up 2.1 per cent from August on account of the grain intensive pig and poultry sectors recording strong gains, it said.

The FAO Dairy Price Index, which averaged 188 points in September, up 7 per cent from August, showed the sharpest monthly increase since January 2011 due to worldwide demand of milk products remaining firm and the rising cost of feed for cattle, FAO added.

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