Dairy, meat, oilseeds drag world food prices a tad in Oc­to­ber: FAO Out­look

The Hindu Business Line - - COMMODITIES - T V JAYAN

World food prices dipped marginally in Oc­to­ber from the pre­vi­ous month, even though there was a surge in sugar and a moder­ate in­crease in ce­re­als, ac­cord­ing to a global out­look re­leased by the UN food agency FAO on Thurs­day.

The Food and Agri­cul­ture Or­gan­i­sa­tion’s food price in­dex — which tracks monthly changes in prices of ce­re­als, oilseeds, dairy, meat and sugar — av­er­aged 163.5 points last month, down 1.4 points (0.9 per cent) from Septem­ber and some 13 points (7.4 per cent) lower than the cor­re­spond­ing value dur­ing the same pe­riod last year.

The de­cline in the global food price in­dex was due to fall­ing dairy, meat and oilseeds prices, which more than off­set the in­crease in the sugar price and a mod­est jump in ce­real prices.

The sugar price in­dex av­er­aged 175.4 points in Oc­to­ber, up 14 points (8.7 per cent) from Septem­ber. The rapid in­crease in sugar price quo­ta­tions was due to a dip in pro­duc­tion pro­jec­tions in In­dia and In­done­sia on ac­count of weather va­garies.

Higher di­ver­sion of sug­ar­cane out­put for ethanol pro- duc­tion in Brazil too con­tributed its bit.

The FAO ce­real price in­dex re­bounded 2.2 points (1.3 per cent) to 166.3 in Oc­to­ber from the pre­vi­ous month on ac­count of firm­ing up of maize and wheat prices, the lat­ter be­cause of de­te­ri­o­rat­ing crop prospects in Aus­tralia. Rice prices, on the other hand, fell be­cause of new ar­rivals in the mar­ket, the FAO said.

The veg­etable oil price in­dex was down 2 points (1.5 per cent) in Oc­to­ber, the low­est level since April 2009. The in­dex has been fall­ing for nine months in a row. The slide was mainly due to slug­gish global im­port de­mand for palm oil. In­ter­na­tional soy­bean oil and mus­tard oil prices, on the other hand, re­bounded slightly while sun­flower oil prices re­mained un­changed.

The global di­ary price in­dex has been con­tin­u­ing its slide since May, but Oc­to­ber wit­nessed one of the worst dips in re­cent months. It slumped 9.2 points (4.8 per cent) in Oc­to­ber to 181.8 from 191 in Septem­ber.

Oc­to­ber also saw a soft­en­ing of global meat prices, which dropped 3.3 points (2 per cent) with the in­dex av­er­ag­ing 161.6 points.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.