ECONOMY

Global food prices go up in September: UN body

GLOBAL FOOD PRICES GO UP IN SEPTEMBER: UN BODY

Global food prices increased in September as higher vegetable oil and dairy prices pushed, according to the United Nations Food and Agriculture Organization (FAO) Thursday.

The food price index averaged 178.4 points in September, up 0.8 percent compared with August and 4.3 percent compared with the same period last year, according to the organization.

The FAO Food Price Index is a trade-weighted index that tracks international market prices of five major food commodity groups.

The vegetable oil price index increased by 4.6 percent in the month compared with August, due to primarily of palm oil prices. Prices of soy, rapeseed and sunflower oils also leveraged the vegetable oil prices.

The dairy price index rose by 2.1 percent monthly in September as butter and cheese prices went up at a time of supply constraints in Australia, New Zealand and the European Union.

In September, meat and sugar prices remained unchanged while cereal prices decreased by 1 percent because of fall in maize and wheat quotations with strong supply and harvest prospects.

"FAO expects the current growing season to yield record worldwide cereals output," it added.

Meanwhile, the FAO also revealed its 2017 forecast in the cereal market, expecting a production of 2.6 million tons, which is 7 million tons above the record set in 2016.

"FAO now forecasts 750.1 million tons of wheat to be harvested in 2017 and 1.361 million tons of coarse grains, as well as 500.7 million tons of rice, slightly down from the previous forecast but close to last year's record output," it said.

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