Food price index climbs 2.2% of FAO in may

The food price index of the Division of the United Nations FAO (food and Agriculture Organization) grew 2.2% in May compared with April and 10% in comparison with the same month of 2016. The indicator, which stood at 172.6 points, measures the variation of a basket of products marketed internationally.
May recorded the first high after three months and all food groups rose, with the exception of sugar.
The index for cereals was in 148.1 points, with high of 1.4% in comparison with April. "Climate problems and strong commercial activity supported exports of wheat," says the text of the FAO. The rice trade also grew in the month, while the corn had light recoil.
The indicator for vegetable oils ranged 4.7% always in comparison with April after three consecutive months of decline. "While prices of palm oil have shown the growing global demand, oil prices have risen in anticipation of solid and robust consumption, particularly in the United States."
The index for dairy products grew by 5.1% and 1.5%, meat on a monthly comparison. On the other side, the indicator for the FAO sugar fell 2.3%, marking the 13th consecutive month of shrinkage. "Sugar prices were strongly affected by higher than expected production in the Center-South region of Brazil, combined with the sudden fall of the real, which has discouraged the passion for domestic ethanol in favor of relatively more profitable sugar exports.
Expectations of higher exports of Pakistan and China''s decision to impose high taxes on imports in addition to the commitment of WTO tariff quota (TRQ) exerted additional pressure to the international price of sugar. "