Low cereal stocks, extra demand keep prices high: FAO

World food prices were steady between July and August but extra demand for cereals kept their price high, the latest figures from the UN's Food and Agriculture Organization showed Thursday.

The FAO Food Price Index averaged 231 points last month compared to 232 points in July. It was 26 percent higher than in August 2010 but seven points below its all-time high of 238 points in February this year.

Cereal prices rose, as even though production is expected to increase, it will not do so by enough to offset the additional demand, the FAO said.

"Stocks continue to be low and prices continue to be high and volatile," the organisation said.

The Cereal Price Index averaged 253 points in August, up 2.2 percent, or five points, from July and 36 percent higher than in August 2010.

The rise was largely offset by declines in international prices of most other commodities included in the index, oils and dairy products in particular, the FAO said.

Cereal production is now this year forecast to reach 2,307 million tonnes, three percent higher than in 2010.

The FAO said maize supply was a cause for concern following downward revisions to crop prospects in the United States, the world's largest maize producer, because of hot weather in July and August.

Average wheat prices were also up nine percent in August as a result of the strong demand for feed wheat and shrinking supplies of high quality wheat.

Rice prices, too, increased, with the benchmark Thai rice price up five percent from July, driven by a policy change in Thailand, the world's largest rice exporter, where the rice paddy will be purchased from farmers at above market prices.

jlv/glr/lc/ga

 

Life and Style
ebookNow available in paperback
ebooks
ebookA delicious collection of 50 meaty main courses
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

ES Rentals

    Independent Dating
    and  

    By clicking 'Search' you
    are agreeing to our
    Terms of Use.

    iJobs Job Widget
    iJobs General

    Recruitment Genius: Web Developer - Junior / Mid Weight

    £15000 - £25000 per annum: Recruitment Genius: To support their continued grow...

    Recruitment Genius: Marketing Data Specialist

    £22000 - £25000 per annum: Recruitment Genius: They are the go-to company for ...

    Recruitment Genius: Search Marketing Specialist - PPC / SEO

    Negotiable: Recruitment Genius: This is an opportunity to join the UK's leadin...

    Recruitment Genius: Sales Administrator

    Negotiable: Recruitment Genius: This caravan dealership are currently recruiti...

    Day In a Page

    Greece debt crisis: What happened to democracy when it’s a case of 'Vote Yes or else'?

    'The economic collapse has happened. What is at risk now is democracy...'

    If it doesn’t work in Europe, how is it supposed to work in India or the Middle East, asks Robert Fisk
    The science of swearing: What lies behind the use of four-letter words?

    The science of swearing

    What lies behind the use of four-letter words?
    The Real Stories of Migrant Britain: Clive fled from Zimbabwe - now it won't have him back

    The Real Stories of Migrant Britain

    Clive fled from Zimbabwe - now it won’t have him back
    Africa on the menu: Three foodie friends want to popularise dishes from the continent

    Africa on the menu

    Three foodie friends want to popularise dishes from the hot new continent
    Donna Karan is stepping down after 30 years - so who will fill the DKNY creator's boots?

    Who will fill Donna Karan's boots?

    The designer is stepping down as Chief Designer of DKNY after 30 years. Alexander Fury looks back at the career of 'America's Chanel'
    10 best statement lightbulbs

    10 best statement lightbulbs

    Dare to bare with some out-of-the-ordinary illumination
    Wimbledon 2015: Heather Watson - 'I had Serena's poster on my wall – now I'm playing her'

    Heather Watson: 'I had Serena's poster on my wall – now I'm playing her'

    Briton pumped up for dream meeting with world No 1
    Wimbledon 2015: Nick Bollettieri - It's time for big John Isner to produce the goods to go with his thumping serve

    Nick Bollettieri's Wimbledon Files

    It's time for big John Isner to produce the goods to go with his thumping serve
    Dustin Brown: Who is the tennis player who knocked Rafael Nadal out of Wimbeldon 2015?

    Dustin Brown

    Who is the German player that knocked Nadal out of Wimbeldon 2015?
    Ashes 2015: Damien Martyn - 'England are fired up again, just like in 2005...'

    Damien Martyn: 'England are fired up again, just like in 2005...'

    Australian veteran of that Ashes series, believes the hosts' may become unstoppable if they win the first Test
    Tour de France 2015: Twins Simon and Adam Yates have a mountain to climb during Tour of duty

    Twins have a mountain to climb during Tour of duty

    Yates brothers will target the steepest sections in bid to win a stage in France
    John Palmer: 'Goldfinger' of British crime was murdered, say police

    Murder of the Brink’s-MAT mastermind

    'Goldfinger' of British crime's life ended in a blaze of bullets, say police
    Forget little green men - aliens will look like humans, says Cambridge University evolution expert

    Forget little green men

    Leading evolutionary biologist says aliens will look like humans
    The Real Stories of Migrant Britain: An Algerian scientist adjusts to life working in a kebab shop

    The Real Stories of Migrant Britain

    An Algerian scientist struggles to adjust to her new life working in a Scottish kebab shop
    Bodyworlds museum: Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy

    Dying dream of Doctor Death

    Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy