Oluchi Chibuzor
The Strong demand for wheat and dairy products has continued to drive the barometer of food commodity prices in international markets up for the fourth consecutive month in November, the Food and Agriculture Organization of the United Nations (FAO) reported.
According to the UN’s body, the increase reflected strong demand amid tight supplies, especially of higher quality wheat, while prices were also supported by concerns about untimely rains in Australia and uncertainty regarding potential changes to export measures in the Russian Federation.
FAO disclosed this in a statement recently, forecasting global trade in cereals in 2021/22 to increase by zero point seven percent to 480 million tonnes, with an anticipated two point two percent expansion in world wheat trade more than offsetting a likely contraction in coarse grains trade.
The statement adds that: “The FAO Food Price Indexaveraged 134.4 points in the month, its highest level since June 2011 and one point two percent higher than during October. The index, which tracks monthly changes in the international prices of commonly-traded food commodities, was 27.3 percent higher than its level in November 2020.
“The FAO Dairy Price Index led November’s aggregate rise, increasing by 3.4 percent from the previous month. Strong global import demand persisted for butter and milk powders as buyers sought to secure spot supplies in anticipating of tightening markets.
“The FAO Cereal Price Index increased by three point one percent in November from the previous month and was 23.2 percent higher than its year-ago level. Maize export prices rose slightly and international rice prices remained broadly steady, while wheat prices hit their highest level since May 2011,” the statement stated.
For the FAO Sugar, Price Index was one point four percent higher in November than in October and nearly 40 percent above its level in November 2020.
According to the report the increase was primarily driven by higher ethanol prices, though large shipments from India and a positive outlook for sugar exports by Thailand tempered the upward pressure on quotations.
While, FAO Vegetable Oil Price Index declined by zero point three per cent from a record high reached in October, it reflected lower values for soy and rapeseed oils as well as lower crude oil prices. International palm oil prices remained firm.
In a related report on Prospects and Food Situation Report, FAO assesses that globally 44 countries, including 33 in Africa, nine in Asia and two in Latin America and the Caribbean, are in need of external assistance for food.
The 44 countries in need of external assistance for food are: Afghanistan, Bangladesh, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Congo, Democratic People’s Republic of Korea, Democratic Republic of Congo, Djibouti, Eritrea, Eswatini, Ethiopia, Guinea, Haiti, Iraq, Kenya, Lebanon, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mozambique.
Others include Myanmar, Namibia, Niger, Nigeria, Pakistan, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Syrian Arab Republic, Uganda, United Republic of Tanzania, Venezuela, Yemen, Zambia and Zimbabwe.
