World food prices rise for seventh month in a row | Daily News

World food prices rise for seventh month in a row

World food prices rose for the seventh consecutive month in December, led by dairy products and vegetable oils, the Food and Agriculture Organization of the United Nations reported today.

The FAO Food Price Index averaged 107.5 points in December, 2.2 percent higher than in November. Over the whole of 2020, the benchmark index, which tracks monthly changes in the international prices of commonly-traded food commodities, averaged 97.9 points, a three-year high and a 3.1 percent increase from 2019 although still more than 25 percent below its historical 2011 peak.

The FAO Cereal Price Index rose 1.1 percent from November and for all of 2020 averaged 6.6 percent above the level of 2019. Export prices for wheat, maize, sorghum and rice all rose in December, moving higher in part due to concerns over growing conditions and crop prospects in North and South America as well as the Russian Federation.

The FAO Vegetable Oil Price Index gained 4.7 percent in December to reach its highest level since September 2012. In addition to ongoing supply tightness in major palm oil producing countries, international trade was affected by a sharp hike in export duties in Indonesia.

The FAO Dairy Price Index increased 3.2 percent in December, its seventh consecutive monthly rise, with all categories higher due to strong global import demand induced by concerns over drier and warmer conditions on Oceania’s milk production as well as high internal demand in Western Europe.

The FAO Meat Price Index increased 1.7 percent in the month of December, while its full-year average was 4.5 percent below that of 2019.

The FAO Sugar Price Index declined by 0.6 percent in December after a marked increase during thec previous month.