In October, the value of the FAO price index for dairy products increased by 2.2 percent
The increase in prices in October is due to some supply tensions in the short term due to strong import demand in the markets of Asia and the Middle East.
Overall, in October 2020, the average value of the FAO food price index, which reflects international prices for basic food products, was 100.9 points, which is 3.1 percent higher than in September and 6.0 percent higher than in October 2019.
The value of the FAO price index for cereal increased by 7.2 percent compared to the previous month and by 16.5 percent compared to October 2019. Wheat prices showed the largest increase, due to a reduction in export supply, unfavorable weather conditions in Argentina and a persistent lack of precipitation, which negatively affects the condition of winter wheat in some parts of Europe, North America and the Black sea region. Prices for corn, feed barley and sorghum also showed an upward trend in October, while rice prices declined slightly.
The value of the FAO price index for vegetable oil increased by 1.8 percent over the past month, reaching a nine-month high, primarily due to higher prices for palm and soybean oil. At the same time, rapeseed oil prices declined slightly as a result of increasing demand uncertainty in the European Union (EU) due to the recent escalation of the COVID-19 pandemic in the region.
The value of the FAO price index for sugar increased by 7.6 per cent compared to the September level, mainly due to the expected decline in production in both Brazil and India, the two largest sugar – producing countries.
The October value of the FAO price index for meat was 0.5 percent lower than in September, due to a drop in prices for pork from Germany due to import restrictions on products of this country from China, thus, this decline continues for the ninth month since January. Beef and poultry prices also declined, while lamb prices rose in the face of strong domestic demand and low export supply.
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