The Food and Agriculture Organisation (FAO) has said that its latest finding shows that palm oil keeps global food price trending in the month of April 2016, reports NaijaAgroNet.
Just as NaijaAgroNet gathered that its updated global cereal harvest forecast points to stable markets for key staples, which also rose in April, marking its third consecutive monthly increase after four years of decline.
Also, NaijaAgroNet reports that the FAO Food Price Index averaged 151.8 points in April, a 0.7 per cent increase from March, which is about 10 per cent below its level a year ago and more than a third off its 2011 highs.
The gradual increase, FAO said, is far from even across the board, adding that April’s increase was driven by palm oil prices and, in a minor key, cereals, while sugar prices tapered down after a strong increase in March.
The FAO Food Price Index is a trade-weighted index tracking international market prices for five key commodity groups, namely the major cereals, vegetable oils, dairy, meat and sugar. Its decline over the past year reflects ample food supplies, a slowing global economy and a stronger U.S. dollar.
The FAO Vegetable Oil Price index rose 4.1 per cent, due largely to a grim 2016 production outlook for palm oil coupled with a growing worldwide demand.
NaijaAgroNet equally reports that the FAO Cereal Price Index rose 1.5 per cent on the month, due primarily to international maize quotations, themselves influenced by a weaker United States dollar and spillover from the oilseeds complex.
However, rice prices declined marginally, while wheat markets posted limited gains amid expectations of large supplies in the new season for the crop.
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