Global grain commodity prices stop falling and rebound

Published 2021년 9월 4일

Tridge summary

The Food and Agriculture Organization of the United Nations (FAO) has reported a rebound in global food commodity prices in August, following two months of decline. The average price of the FAO Food Price Index in August was 127.4 points, a 3.1% increase from July and a 32.9% increase from the same period in 2020. This surge was primarily due to higher prices of sugar, wheat, and vegetable oils. The FAO also forecasts that global cereal production in 2021 will reach 2.788 billion tons, an increase of 0.7% from the previous year. However, dry weather is expected to reduce wheat stocks, with US stocks at an 8-year low and Canadian stocks at their lowest in 40 years.

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Original content

On September 2, the Food and Agriculture Organization of the United Nations (FAO) issued a report stating that, driven by the strong rise in international quotations of sugar, wheat and vegetable oils, global food commodity prices rebounded rapidly in August after falling for two consecutive months. In August, the FAO Food Price Index averaged 127.4 points, an increase of 3.1% over July and an increase of 32.9% over the same period in 2020. Affected by concerns about frost damage to Brazil’s crops, the world’s largest sugar exporter, the FAO Sugar Price Index rose 9.6% in August from July, but India and the European Union have good production prospects, crude oil prices fell, and the Brazilian currency weakened, etc. Factors that slowed down this upward momentum. The FAO Vegetable Oil Price Index rose by 6.7% in August, and international palm oil prices rebounded to historical highs due to market concerns that Malaysian palm oil production was lower than potential production, ...

Source: Chinaeconomy