World: FAO-UN predicts that this year's cereal production will set a record

The Food and Agriculture Organization of the United Nations (FAO) has reported a 4.8% increase in the global food price index in May 2021 compared to April, and a 39.7% increase from the same period last year, marking a 12th consecutive month of price hikes. This surge is attributed to rising prices in all five commodity categories, including grains, vegetable oils, sugar, meat, and dairy products. The increase in cereal prices was led by a significant rise in corn prices, which have since fallen due to improved U.S. production prospects. The vegetable oil price increase was primarily driven by palm oil, soybean, and rapeseed oil prices, largely due to slow production growth and anticipated demand in the biodiesel industry. Sugar prices rose due to delayed harvests and concerns about declining crop production in Brazil, but were tempered by massive exports from India. Meat prices increased due to accelerated Chinese imports and increased domestic demand, and dairy product prices increased due to steady import demand for skimmed and whole milk powder. The FAO also forecasts a record high in global cereal production in 2021, at 2.821 billion tons, with corn seeing the largest increase.