The FAO Food Price Index, which tracks monthly changes in the international prices of commonly-traded food commodities, averaged 118.5 points in March, 2.1% higher than in February and reaching its highest level since June 2014.
According to the FAO, the March increase was led by the vegetable oil price index, which rose 8% from the previous month to hit a nearly 10-year high, “with soy oil prices rising sharply due in part to the prospects of firm demand from the biodiesel sector.”
The dairy price index increased 3.9% from February, with “butter prices buoyed by somewhat tight supplies in Europe associated with increased demand in anticipation of a food-service sector recovery.” Milk powder prices also rose, supported by a surge in imports in Asia, particularly China, due to declining production in Oceania and scarce shipping container availability in Europe and North America.
The meat price index showed a 2.3% rise from February, according to the report. The agriculture organization pointed out that imports by China and a surge in internal sales in Europe ahead of the Easter holiday celebration underpinned increasing poultry and pig meat quotations.
By contrast, the cereal price index dropped by 1.8%, but it is still 26.5% higher than in March 2020, the report said, adding: “Wheat export prices declined the most, reflecting generally good supplies and favourable production prospects for 2021 crops. Maize and rice prices also declined, while those for sorghum rose.”
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Article source: https://www.rt.com/business/520594-global-food-prices-rise/?utm_source=rss&utm_medium=rss&utm_campaign=RSS
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