World Food Prices Up, According to FAO
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World food prices went up 1.1 percent in March this year for second month in a row, reported today the UN Organization for Food and Agriculture (FAO). In its monthly report on that issue, FAO attributes the hike a substantial increase in prices of the main cereals and dairy products, which compensated the fall in those of sugar and most of the vegetable oils.
The report of the UN specialized organism detailed that world cereal production reached a record level in 2017, almost 2.6 billion tons, some 33 million more than in 2016.
However, the entity forecasts a descent in world corn and wheat production for 2018, according to the FAO monthly reporto n offer and demand of cereals.
The Price index of cereals maintains the up-trend, with 2.7 percent in Marcho ver February and 12.1 percent over its price in March, 2017.
According to FAO, that increase responds above all to climate adversities, including the prolonged drought in the United States and the conditions of cold and humidity in some zones of Europe.
In the case of corn, the increase obeys to a high world demand together with a worsening perspective of harvests in Argentina, argues the FAO report.
For its part, the price index of dairy products increased by 3.3 percent in March, given the strong world demand that rocketed the price of butter, cheese and whole powder milk.
On the contrary, the price of sugar fell 3.4 percent due to wide availability for export; also vegetable oils descended slightly, while meat prices stayed invariable compared to February quotations.
As moderate describes the report the perspective of world cereal production in 2018 and, in that sense, a reduction of one percent is expected from the record wheat harvest of 2017.
Also, it is expected secondary cereal production will fall compared to last year's record, given the climate adversities in Argentina, the change from corn to soy in Brazil and the reduction of plantations in South Africa due to lower prices, says the monthly price report of FAO. / PL
