The United Nations Food and Agriculture Organization (FAO) said on Thursday that world food prices in June recorded the first rise in 2020, representing a slight recovery after sharp declines caused by the Corona virus pandemic.
The average FAO food price index, which measures the monthly changes in a basket of grains, vegetable oils, dairy products, meat and sugar, reached 93.2 points last month, up 2.4% from last May.
"It has modified the basis of all its indicators, as it changed the base period to 2014-2016 after it was 2002-2004." As trade patterns evolved, it is necessary to update the base period to ensure that the weighted basket is significant, "she said.
In light of the uncertainty in the markets, the prices of vegetable oils, sugar and dairy products recovered to their highest level in several months after sharp declines in May, but most of the prices of grains and meat continued to be subjected to downward pressures.
The vegetable oil price index jumped 11.3% last June after falling for four months in a row, and the recovery mainly reflects an increase in the value of palm oil that received support from the recovery of global import demand and fears of potential problems in production due to a prolonged shortage of migrant workers related to the consequences The pandemic.
The "FAO" that the sugar price index rose 10.6% on a monthly basis and the dairy products index rose 4%, but all its components remained below their prices before the pandemic.
FAO also revised its forecast for an increase in the cereal season in 2020 by about 9.3 million tons and predicted that global production would reach nearly two billion and 800 million tons, an increase of 3% over the record harvest level recorded in 2019.