November 7, 2022

FAO says world wheat prices up 3.2% in October

The United Nations Food and Agriculture Organisation's (FAO) Food Price Index showed that global wheat prices increased 3.2% in October 2022 because of lower US supplies, Xinhua News reported.

The grains and cereals sub-index increased by 3%, after rising 2.2% the previous month. The conflict between Ukraine and Russia was cited by the FAO as the reason for the "continuing uncertainties" regarding a programme that permits Ukraine to export wheat from its Black Sea ports safely. It added that lower production levels in the US were also a factor.

Due to a dry planting season in Argentina and lower production expectations in the United States and the European Union, corn prices increased by 4.3%

The price increase for grains and cereals was offset by decreases in the cost of vegetable oils by 1.6%, dairy products by 1.7%, meats by 1.4%, and sugar by 0.6%. However, due to sharp increases from the early months of the Ukraine crisis, all four sub-indices continued to be above their levels from a year ago.

The FAO's Food Price Index is based on prices for 73 different products across 23 different food commodity categories that are available globally and are compared to a base year. The next FAO index is expected to be made public on December 2.

-      Xinhua News