Gaza, Palestine | BAZZUP | The UN Food and Agriculture Organization (FAO) said on Friday that sugar prices throughout the world began to level off in October after seeing significant hikes in the preceding months.
Due to supply shortages brought on by harsh weather in nations that produce sugar, elevated energy costs, and the effects of the El Nino weather phenomena, sugar has become the most volatile food commodity in recent weeks.
The FAO did report that sugar prices fell 2.2% in October, after a 9.8% increase in the previous month to the highest level since 2010.
Global sugar prices had increased in eight of the previous twelve months, and even with the little drop in October, they were still 46.6 percent higher than a year earlier.
Lower sugar prices contributed to a little reduction in the FAO’s overall Food Price Index. In comparison to the prior month, the index decreased by 0.5 percent. It is now 10.9 percent below its October levels from the previous year, having decreased in all but two of the previous 12 months.
With sluggish worldwide demand, rice prices witnessed a 2.0 percent reduction in October, leading to a 1.0 percent decline in the prices of grains and cereals, the biggest component of the index.
October saw a 0.7% decrease in the price of vegetable oils and a 0.6% decrease in the price of meat compared to the previous month.
The one major commodity category where prices increased in October was dairy, with a 2.2 percent increase driven mostly by higher costs for milk powder as a result of rising demand. Nine months of losses were ended by these victories.