The FAO world food price index (FFPI) recorded another increase for September, up 1.5 points from the previous month and 32.1 points higher than in September last year.
Cereals were the big winner posting a 2.6-point increase on august bringing the cereals index to 132.5, 28.5 points ahead of last year.
Within cereals, wheat was the top performer recording a 4% increase month on month and a 41% increase on the same period in 2020.
All commodity prices increased in September due to low stocks and early season in southern hemisphere countries
The dairy index increased by 1.7 points on August which is 15.6 points up on the same period last year.
All commodity prices increased in September due to low stocks and early season in southern hemisphere countries.
The meat index was the same as August at 115.5 points, which is 24.1 points up on this time last yer.
Tighter supplies from the southern hemisphere and strong global demand continue to drive the world meat trade. It will interesting to observe if this trend continues as China ceased importing beef from Brazil in September.
Brazil are the world’s biggest exporter of beef and if their main export market is closed for any length of time it will mean huge supplies are released onto world markets.
After a period of strong growth in the early part of the year, dairy and meat index prices have now stabilised.
Cereals continue to push ahead which means more expensive feed for livestock and when the surge in energy and fertiliser prices are added, on farm production costs will quickly offset the market gains for agricultural produce.