Global food prices rose again in September due to “tight supply and strong demand” for commodities such as wheat and palm oil, according to the FAO.
Cereal prices overall rose by 2% in September compared to the previous month, according to the FAO. Price of wheat rose by 4% over one month, and by 41% over one year. The price of rice has also increased.
The FAO food prices index rose by 1.2% over August, to 130 points, and by 32.8% over a year.
The indicator, which measures the change in international prices of a basket of basic food products, is nearing its February 2011 record level (137.6 points).
The price of cereals rose overall by 2% in September compared to the previous month. Over the past year, wheat prices have jumped by 41% across the world. Similarly, rice prices have also risen.
In contrast, maize prices increased moderately by 0.3% month-on-month (+38%). It happened as improved global crop prospects and the start of the U.S. and Ukrainian harvests, which largely offset the effects of hurricane-related port disruptions in the U.S.
Abdolreza Abbassian, a senior economist at the FAO, is quoted in the statement as saying, “Wheat demand will be tested in the coming weeks, against the backdrop of rapidly rising prices.”
Global cereal production should to reach record levels in 2021, but it will still fall short of consumption needs.
The world price of vegetable oils increased by 1.7% over one month (+60% over one year). Palm oil production has reached a ten-year high level due to global demand and a lack of migrant labor in Malaysia, explains the FAO.
Rapeseed oil prices also rose sharply. Meanwhile, soybean and sunflower oil prices fell.
The price of sugar increased by 0.5% compared to August (+53.5% over one year).