Rome: Global wheat prices rose by 3.2 per cent in October partially due to tighter supplies from the US following a downward production revision, according to the Rome-based Food and Agriculture Organization (FAO).
The observation made in the FAO’s Food Price Index issued on Friday was unchanged from September after six consecutive months of decline, reports Xinhua news agency.
The grains and cereals sub-index rose by 3 per cent, building on a 2.2 per cent increase a month earlier.
The UN agency explained this by “continuing uncertainties” about a program that allows Ukraine to safely export wheat from its Black Sea ports due to the ongoing war with Russia.
Lower production levels in the US were also a factor, it said.
Corn prices rose by 4.3 per cent, reflecting lower production expectations in the US and the European Union combined with a dry planting season in Argentina.
The increase in grain and cereal prices was balanced by a 1.6 per cent drop in prices for vegetable oils, a decrease of 1.7 per cent for dairy prices, a reduction of 1.4 per cent for meats, and a 0.6 per cent decline in prices for sugar.
All four sub-indexes remained above their levels from a year ago, however, due to dramatic increases from the early months of the Ukraine war.
The FAO’s Food Price Index is based on worldwide prices for 23 food commodity categories covering prices for 73 different products compared to a baseline year.
The next FAO index is scheduled to be released on December 2.