Wheat and dairy drive higher world food commodity prices
Global food commodity prices rose in November, the fourth month in a row, because of strong demand for wheat and dairy.
The Food and Agriculture Organization of the United Nations’ (FAO) Food Price Index reached its highest level in just over 10 years. The report shows strong international demand continuing for butter and milk powders. Strong demand for higher quality wheat persists, amid tight supplies.
The FAO says worldwide coarse grains and rice outputs are expected to increase. While world cereal utilization is expected to increase in 2021/22 with stocks declining, the FAO sees a “comfortable supply.”
Crop production in 44 countries – mostly in Africa – is down because of conflicts and drought and FAO expects outside food assistance will be needed.