Global wheat production in 2021 is likely to increase and hit a new record of 780 million tonnes, according to FAO’s preliminary forecast, as expectations of a rebound in production in the European Union more than offset weather-impacted production prospects for output in the Russian Federation.
Maize production in South Africa is expected to reach near-record levels in 2021, while outputs in South America are forecast at well above-average levels. The crop is yet to be planted in countries north of the equator.
The world cereal production is also expected to rise by 1.9 per cent, lifted by higher-than-expected outturns reported for maize in West Africa, for rice in India, and wheat harvests in the European Union, Kazakhstan and the Russian Federation.
Global food commodity prices rose for the ninth consecutive month in February, with quotations for sugar and vegetable oils increasing the most, the Food and Agriculture Organization of the United Nations (FAO) reported.
The FAO Food Price Index, which tracks monthly changes in the international prices of commonly-traded food commodities, averaged 116.0 points in February, 2.4 percent higher than the previous month and up 26.5 percent from a year ago.
The FAO Sugar Price Index rose by 6.4 percent from January, as production declines in key producing countries together with strong import demand from Asia prompted ongoing concerns over tighter global supplies. Expectations of a production recovery in Thailand and a bumper crop in India dampened the increase.
The FAO Vegetable Oil Price Index gained 6.2 percent, reaching its highest level since April 2012. Prices for palm, soy, rape and sunflower seed oils all rose.
The FAO Dairy Price Index rose by 1.7 percent, led by international export quotations for butter, where firm imports by China met limited supplies from Western Europe. Cheese prices declined, partly due to high inventories in the United States of America.
The FAO Cereal Price Index averaged 1.2 percent higher than in January. Sorghum prices rose 17.4 percent in the month, driven by ongoing strong demand from China. International prices of maize, wheat and rice were either stable or edged up slightly.