Dairy nudges FAO Food Price Index higher by one percent

The Food and Agriculture Organization Price Index (FPI) crept higher by one percent in March compared with a month before, driven mainly by an 11 percent increase in dairy. Dairy products carry a 17 percent weight among the various commodity prices included in the calculation of the overall FPI.

Meanwhile, FAO's monitoring of the global cereal supply and demand situation has slightly revised the 2012 crop production estimate upward by nearly 3 million tonnes, which now stands 2 percent lower than the record set in 2011.

"World cereal production in 2013 could recover strongly barring unfavourable weather in major producing regions," FAO says in its latest Cereal Supply and Demand Brief. The outlook for all cereal crops is positive overall, with wheat crops already well advanced and plantings for rice and coarse grains expected to increase these coming cropping months owing to attractive prices. Global wheat production in 2013 is expected to increase by 4 percent to 690 million tonnes, the second highest ever after the 700 million tonnes produced in 2011.

Central Asian News Services