FAO global food price index reaches highest level since July 2014

The United Nations Food and Agriculture Organization (FAO) global food price index rose for the ninth consecutive month in February and reached 116 points, 2.8 points (2.4%) more than in January and the highest level since July 2014. Last month's hike was led by strong advances in the sugar and vegetable oil sub-indices. Cereals, dairy products and meat also rose, but to a lesser extent. The vegetable oil sub-index registered an increase of 6.2% compared to January, to 147.2 points. "Palm oil prices increased due to concerns about low stocks in exporting nations, while soybean oil prices were also raised by tightening supply before the arrival of the South American harvest," said the FAO, in a note. The sugar sub-index rose 6.4% in February, to 100.2 points, driven by restricted supply in India. The increase in oil prices, which may encourage Brazilian mills to produce less sugar and more ethanol, has also put pressure on the indicator, the FAO said. The indicator that measures ...