Led by cereals, vegetable oils, and dairy, all FAO food price subindexes were up in September. Though gains were modest, the aggregate Food Price Index (FPI) still rose over 1 percent from August. (All values are adjusted for inflation.)
The FPI showed monthly gains from June 2020 through May 2021, dipped in June and July, and rebounded in August and September, reaching its highest point since late 2010.
The sugar index rose for the sixth straight month as the market continues to focus on forecast lower Brazilian production due to frosts, poor rains, and more diversion of cane to ethanol manufacturing. The sugar subindex reached its highest level since Q1 2017, its modest rise of half a percent in September suggests that the market is not forgetting crop gains forecast across the Northern Hemisphere and in Southeast Asia.