UN “Worried” As Global Food Prices Soar To Ten Year High – JP

Back in December, SocGen’s resident market skeptic Albert Edwards shared with the world why he is starting to panic about soaring food prices. And since that was before food prices really took amid broken supply chains, trillions in fiscal stimulus and exploding commodity costs, off we can only imagine the sheer terror he must feel today.

A United Nations index of world food costs climbed for a 12th straight month in May, its longest stretch in a decade, rising to the highest in almost a decade, heightening concerns over bulging grocery bills.

All five components of the index rose during the month, with the advance led by pricier vegetable oils, grain and sugar.

Month after month, the UN’s Food and Agriculture Organization’s food price index continues to soar to levels not seen in a decade. Soaring food prices have tremendous implications on societal trends and may result in unrest in emerging market countries if trends persist. 

For May, the FAO Food Price Index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat, and sugar, surged to an average of 127.1 points in May, 4.8% higher than in April and 39.7% higher than in May 2020.

The Rome-based FAO data said prices of vegetable oils, sugar, and cereals drove the increase in the overall index to the highest level not seen since September 2011 and only 7.6% below its all-time high in nominal terms.

FAO’s cereal price index rose 6.0% in May over last month and 36.6% year-on-year. Maize, also known as corn, is a cereal grain that led the surge and is up 89% over the previous year’s value. Wheat prices also saw a jump, up 6.8% in May over the prior month, while rice prices were flat.- READ MORE

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