Global Food Price Index up Six Percent

By CnAgri2012-08-09 19:17:09 Print

The FAO Food Price Index climbed six percent in July 2012 after three months of decline.

The Index, which measures the monthly change in the international prices of a basket of food commodities, averaged 213 points, up 12 points from June. That was still well below the peak of 238 points reached in February 2011, however.

The Index's sharp rebound was mostly driven by a surge in grain and sugar prices. International prices of meat and dairy products were little changed.

The FAO Cereal Price Index averaged 260 points in July, up 17 percent, or 38 points, from June. That was 14 points below its all-time high of 274 points in April 2008.

The severe deterioration of maize crop prospects in the United States following extensive drought damage pushed up maize prices by almost 23 percent in July.

International wheat quotations also surged 19 percent amid worsened production prospects in the Russian Federation and expectations of firm demand for wheat as feed because of tight maize supplies.