World meals costs rose in May at their quickest month-to-month price in additional than a decade, posting a twelfth consecutive month-to-month enhance to hit their highest degree since September 2011, the United Nations meals company mentioned on Thursday.
FAO additionally issued its first forecast for world cereal manufacturing in 2021, predicting output of practically 2.821 billion tonnes — a brand new document and 1.9% up on 2020 ranges.
The Food and Agriculture Organization’s meals worth index, which measures month-to-month modifications for a basket of cereals, oilseeds, dairy merchandise, meat and sugar, averaged 127.1 factors final month versus a revised 121.3 in April.
The April determine was beforehand given as 120.9.
On a year-on-year foundation, costs have been up 39.7% in May.
FAO’s cereal worth index rose 6.0% in May month-on-month and 36.6% year-on-year. Maize costs led the surge and are actually 89.9% above their year-earlier worth, nevertheless FAO mentioned they fell again on the finish of the month, lifted by an improved manufacturing outlook within the United States.
The vegetable oil worth index jumped 7.8% in May, lifted primarily by rising palm, soy and rapeseed oil quotations. Palm oil costs have been boosted by gradual manufacturing development in southeast Asia, whereas prospects of sturdy world demand, particularly from the biodiesel sector, drove up soyoil costs.
The sugar index posted a 6.8% month-on-month acquire, due largely to reap delays and considerations over lowered crop yields in Brazil, the world’s largest sugar exporter, FAO mentioned.
The meat index rose 2.2% from April, with quotations for all meat varieties buoyed by a quicker tempo of import purchases by east Asian international locations, primarily China.
Dairy costs rose 1.8% on a month-to-month foundation and have been up 28% on a yr earlier. The enhance was led by “stable import demand” for skim and entire milk powders, whereas butter costs fell for the primary time in nearly a yr on elevated export provides from New Zealand.
FAO mentioned its forecast for document world cereal manufacturing this yr was underpinned by a projected 3.7% annual development in maize output. Global wheat manufacturing was seen rising 1.4% year-on-year, whereas rice manufacturing was forecast to develop 1.0%.
World cereal utilization in 2021/22 was seen rising by 1.7% to a brand new peak of two.826 billion tonnes, simply above manufacturing ranges. “Total cereal meals consumption is forecast to rise in tandem with world inhabitants,” FAO mentioned.
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