Global food prices rise for third consecutive month

Global prices of key staple food commodities rose in April, marking its third consecutive monthly increase after four years of decline.

According to the ‘Food and Agriculture Organization’ (FAO), Food Price Index averaged 151.8 points in April, a 0.7 percent increase from March. That is about 10 percent below its level of a year ago and more than a third off its 2011 highs.

The gradual increase is far from even across the board. April’s increase was driven by palm oil prices and, in a minor key, cereals, while sugar prices tapered down after a strong increase in March.

World cereal utilization in the season ahead is expected to rise by only 1.1 percent due to slower growth in the use of cereals – especially wheat and barley – as livestock feed.

#UNFAO All #Rice Price index (2002-04=100) averaged 195 points in April 2016, hardly changed from its March value of 196 points

— FAO statistics (@FAOstatistics) May 7, 2016

FAO raised its forecast for world cereal production in 2016 slightly to nearly 2,526 million tonnes, virtually the same as in 2015 and potentially on course to be the second-largest global harvest ever.

According to the organization, world cereal stocks are likely to drop by 3.3 percent or 21 million tonnes over the course of the new season. Stocks are forecast to drop most in Brazil, Thailand, India, China, Morocco, Iran, Argentina and South Africa.