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World Food Price Index hits record increase in 18 months in September
[05/10/2024 04:38]
AMMAN-SABA
The FAO World Food Price Index jumped in September, recording its biggest increase in 18 months, supported by rising sugar prices.

The Food Price Index, which tracks prices of the world's most traded agricultural commodities, rose to 124.4 points last month from 120.7 in August, the highest level since July 2023 and up 2.1 percent year-on-year.

The FAO said in its monthly report released on Friday that the sugar index rose 10.4 percent month-on-month as a result of lower crop expectations in Brazil and concerns that India's decision to remove restrictions on the use of sugar cane in ethanol production could affect the availability of exports in the country.

The cereal price index rose 3 percent, supported by higher export prices of wheat and corn, while rice prices fell 0.7 percent, while vegetable oil prices rose 4.6 percent month-on-month, as prices of all types of oils, including palm, soy, sunflower and rapeseed, increased.

FAO said the increase was the result of improved rice and wheat production forecasts, which were higher than the slight decline in global hard grains production.

FAO predicted that global cereal use will increase by 12.4 million tons in 2024-2025 to 2.853 billion tons. In contrast, FAO cut its forecast for world cereal stocks at the end of the 2025 season by 1.7 million tons to 888.1 million tons. Index jumped in September, recording its biggest increase in 18 months, supported by rising sugar prices.


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