Moscow: Global food prices climbed to highest in more than a year as costs rose for all commodities except cereals.
The Food & Agriculture Organization (FAO) food-price index advanced 1.9% in August, resuming gains after a drop in July that was the first since January, according to data published Thursday on the website of the United Nations body. The gauge of 73 prices was up 6.9% from a year earlier.
Costs for dairy, vegetable oils and sugar led gains. Falling European Union milk production cut the potential for global exports more than expected, with the dairy-price index up 8.6% from July, the FAO said.
Prices for vegetable oils rebounded 7.4% on anticipation palm oil output in Malaysia will be lower than previously expected while some consumers such as China and India have raised demand for imports. A stronger Brazilian currency and expectations of a global-supply deficit helped drive up the price of sugar 2.5%.
The gauge of cereals was down 3% amid seasonal pressure from the completion of the crop in the northern hemisphere. A record outlook for the US corn crop and a glut of low-quality wheat, both used as animal feed, also pushed prices lower.
The FAO raised its 2016-17 grain-output estimate by 0.9% to 2.566 billion metric tons, with wheat up 1.2% to a record 740.7 million tons, while grain stockpiles increased by 4.5% to 663.7 million tons. Bloomberg