The Food and Agriculture Organization’s (FAO) food price index, which tracks international prices of the most globally traded food commodities, averaged 133.2 points last month compared with a revised 129.2 for September.
The September figure was previously given as 130.0.
The October reading was the highest for the index since July 2011. On a year-on-year basis, the index was up 31.3% in October.
Agricultural commodity prices have risen steeply in the past year, driven by harvest setbacks and strong demand.
The FAO’s cereal price index rose by 3.2% in October from the previous month. That was led by a 5% jump in wheat prices, which climbed for a fifth consecutive month to reach their highest since November 2012, FAO said.
Wheat futures started November at new peaks, with U.S. prices at fresh highs since 2012 and Paris front-month futures at a record high as import demand remained brisk.
World vegetable oil prices jumped 9.6% on the month to set a record high, supported by further strength in palm oil prices as labor shortages in Malaysia continued to hamper production, FAO said.
In contrast, global sugar prices eased 1.8% in October, ending a run of six straight monthly rises, according to FAO.
Rome-based FAO cut its projection of global cereal production in 2021, to 2.793 billion tons from 2.800 billion estimated a month ago, according to its cereal supply and demand outlook.
That mainly reflected reduced wheat output estimates for Iran, Turkey, and the United States, offsetting an increased forecast for coarse grain production.
Farmers in the United States, due to heavy regulation, have struggled to maintain output of crops, particularly with wheat crops. The supply is simply too demanding.
Thanks to Biden’s economic policies, which tend to focus more on face than on output, the American consumer has been saddled with high food costs during a vulnerable time as we emerge from the pandemic.
Not even emerge, actually. The Biden administration still wants us to believe we are under attack from the China Virus to a.) deflect from their economic failures and b.) justify cheating further elections.
It’s all a scam.
Author: Sebastian Hayworth