Baku, November 11 AZERTAC
The FAO Food Price Index averaged 172.6 points in October, up 0.7 percent for the month and 9.1 percent from a year earlier, with the staple grains' index rising for the first time in three months.
The Food Price Index, which has risen continuously throughout 2016 except for a brief dip in July, is a trade-weighted index tracking international market prices for five major food commodity groups, according to UN FAO official website.
October's rise was driven primarily by jumps in sugar and dairy prices. The FAO Sugar Price Index rose 3.4 percent in October amid reports of production shortfalls in Brazil's Centre South region and India's Maharashtra state. The FAO Dairy Price Index rose 3.9 percent from September, led by rising prices of cheese and in particular butter, as a result of sustained internal demand in the European Union after a period during which stocks were drawn down.
Meanwhile, sowing of summer 2017 cereal crops is underway in southern hemisphere countries, and conducive weather conditions are leading to expansion in South America. The maize area planted in Argentina is expected to expand by 6.0 percent from last year's high level.
Global food consumption of cereals is forecast at 1 106 million tonnes, up 1.3 percent from a year earlier and sufficient to maintain a broadly stable per capita consumption level globally.
World cereal stocks will likely increase to nearly 662 million tonnes by the end of the 2017 seasons, driven by growing wheat inventories, especially in China, the U.S. and Russia.
Coarse grains stocks are projected to drop by 1.7 percent, led by reductions in China, Brazil and South Africa. World rice inventories are expected to fall slightly to 169.8 million tonnes.