ROME- The United Nations’ world food price index jumped in September, data released on Friday showed, posting its biggest gain in 18 months on the back of surging sugar prices.
The price index, compiled by the UN Food and Agriculture Organization to track the most globally traded food commodities, rose to 124.4 points in last month from 120.7 in August, the highest level since July 2023 and up 2.1 percent on the year.
The sugar index soared 10.4 percent month-on-month, driven by worsening crop prospects in Brazil and concerns that India’s decision to lift restrictions on sugarcane use for ethanol production may affect the country’s export availabilities, FAO said.
The cereal price index increased 3.0 percent, led by higher wheat and maize export prices, while rice prices declined 0.7 percent.
Vegetable oil prices gained 4.6 percent on the month, with higher quotations registered across the board for palm, soy, sunflower and rapeseed oils.
Dairy prices rose 3.8 percent in September, with quotations up for whole milk powder, skim milk powder, butter and cheese, while meat prices edged up 0.4 percent.
In a separate report, the FAO marginally increased its forecast for global cereal production in 2024 to 2.853 billion tons from a previous 2.851 billion tons.
The increase reflected upward revisions to rice and wheat outputs that outweighed a minor reduction in global coarse grains production, FAO said.
World cereal utilization looked set to increase 12.4 million tons in 2024/25 to 2.853 billion tons. By contrast, the agency cut its forecast for world cereal stocks at the close of the 2025 season by 1.7 million tons to 888.1 million.
Meanwhile, weather conditions in September remained unfavorable for already started winter grain sowing in Ukraine, APK-Inform agriculture consultancy quoted state weather forecasters as saying.
“Conditions of soil preparation for sowing and sowing of winter grain crops in most areas remained unfavorable due to a lack of effective precipitation and a lack of productive moisture in the soil,” forecasters said in a report.
