ROME (Reuters) – World meals costs rose for a seventh consecutive month in December, with all the most important classes, barring sugar, posting beneficial properties final month, the United Nations meals company stated on Thursday.
The Meals and Agriculture Group’s meals worth index, which measures month-to-month modifications for a basket of cereals, oilseeds, dairy merchandise, meat and sugar, averaged 107.5 factors final month versus 105.2 in November.
The November determine was beforehand given as 105.0.
For the entire of 2020, the benchmark index averaged 97.9 factors, a three-year excessive and a 3.1% improve from 2019. It was nonetheless down greater than 25% from its historic peak in 2011.
Vegetable oil costs continued latest sturdy beneficial properties, leaping 4.7% month-on-month in December after surging greater than 14.0% in November. For the entire of 2020, the index was up 19.1% on 2019.
FAO stated provide tightness in main palm oil producing international locations had pushed costs up, whereas commerce was additionally impacted by a pointy hike in export duties in Indonesia. Costs for soy oil rose partly due to extended strikes in Argentina. [POI/]
The cereal worth index posted a extra modest 1.1% rise in December from the month earlier than. For all of 2020 the index averaged 6.6% above 2019 ranges.
Export costs for wheat, maize, sorghum and rice all rose in December, transferring increased partially as a consequence of issues over rising situations and crop prospects in North and South America in addition to Russia, the Rome-based FAO stated.
The dairy index climbed 3.2% on the month, nonetheless, over the entire of 2020, it averaged some 1.0% lower than in 2019.
In December, all elements of the index rose as a consequence of sturdy world import demand triggered by issues over drier and hotter situations on Oceania’s milk manufacturing in addition to excessive inner demand in Western Europe.
The meat index pushed up 1.7% final month, whereas its full-year common was 4.5% beneath that of 2019. FAO stated poultry quotations rebounded in December, partly because of the influence of avian influenza outbreaks in Europe. Nonetheless, pig meat costs fell barely, hit by the suspension of German exports to Asian markets following African Swine Fever outbreaks.
Bucking the rises in different indices, common sugar costs dipped by 0.6% in December. For 2020 as an entire, the sub-index posted a most 1.1% acquire on 2019 ranges. FAO stated the relative firmness of newest knowledge mirrored a surge in imports by China and elevated demand for refined sugar from Indonesia. [SOF/L]
FAO didn’t challenge an up to date forecast for worldwide cereal harvests in January. Its subsequent estimate is due in February.
Final month, FAO revised down its forecast for the 2020 cereal season for a 3rd month working, reducing it to 2.742 billion tonnes from a earlier 2.75 billion tonnes.
Reporting by Crispian Balmer