World food prices reach new peak
Global cereal production poised to hit an all-time high, stocks set to decline
The FAO Cereal Price Index in October increased by 3.2 percent from the previous month, with world wheat prices rising by 5 percent amid tightening global availabilities due to reduced harvests in major exporters, including Canada, the Russian Federation and the United States of America. International prices of all other major cereals also increased month-on-month.
The FAO Vegetable Oil Price Index went up 9.6 percent in October, hitting an all-time high. The increase was driven by firmer price quotations for palm, soy, sunflower and rapeseed oils. Palm oil prices rose for a fourth consecutive month in October, largely underpinned by persisting concerns over subdued output in Malaysia due to ongoing migrant labour shortages. Record cereal output in 2021 but stocks set to decline
Despite an expected record world cereal production in 2021, global cereal inventories are seen heading for a contraction in 2021/22, according to new forecasts in FAO’s Cereal Supply and Demand Brief, also released today.
The forecast for world cereal output in 2021 is now pegged at 2 793 million tonnes, down by 6.7 million tonnes since the previous report in October, largely due to cuts to the estimates of wheat production in the Islamic Republic of Iran, Turkey and the United States of America.
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