Global Food Prices Soar to Decade-High Amid Growing Demand and Adverse Weather

Food prices around the globe increased for the second consecutive month in September to the highest in a decade, amid adverse weather and growing global demand.

The Food and Agriculture Organization of the United Nations’ (FAO) food price index jumped 130 points in September to the highest since 2011, as food prices advanced 32.8% from year-ago levels. The overall growth in food prices was primarily attributed to price surges for vegetable oils, cereals, and sugar, as some producing regions experienced dismal harvest conditions.

The price index for vegetable oil was up 1.7% between August and September, and has risen by about 60% year-over-year, as uncertainty over labour shortages in Malaysia sent palm oil costs higher. The cereal price index was 2% higher last month, as strong demand around the globe significantly outpaced export supply. The FAO estimates that global cereal production hit a record 2.8 billion tons this year, but was still not enough to offset a larger increase in consumption.

Sugar prices rose 0.5% in September, largely as a result of below average weather conditions in Brazil, which is the largest sugar exporter in the world. However, the FAO anticipates that better-than-expected production in Thailand and India will be help alleviate some of the current price pressures.

The meat price index continued to trend upwards for the twelfth consecutive month, and is 23.6% higher from September 2020. Poultry prices trended lower as global supply increased, while pork prices also slumped last month amid lower demand from Europe and China.


Information for this briefing was found via the FAO. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

Cost of Living Crisis: Should the Canadian Government Start Putting Price Controls on Groceries?

Canadian grocery prices have been a cause for concern as they continue to rise, affecting...

Thursday, August 3, 2023, 11:36:00 AM

Bank of England Admits It Is Helpless in Taming Inflation, Warns of ‘Apocalyptic’ Global Food Shortages

The Bank of England has finally thrown in the towel, admitting defeat in curbing out-of-control...

Wednesday, May 18, 2022, 02:18:00 PM

Consumer Prices May Have Slowed in August, But Food Inflation Continues to Break Records

Both headline and core consumer prices may have slowed in August, but prices for things...

Tuesday, September 20, 2022, 11:14:45 AM

Base-Year Effect To The Rescue: Consumer Prices Continue To Decelerate, But Food Inflation Skyrockets

Canadian consumer prices continued increasing in February, albeit at a much slower pace thanks to...

Tuesday, March 21, 2023, 09:05:11 AM

Maple Leaf CEO: Canadians Face ‘Terrible’ Food Insecurity Amid Rising Income Inequality, Inflation

Despite being an OECD country, it appears that Canada is facing a growing food insecurity...

Wednesday, May 25, 2022, 10:43:00 AM