The United Nations Food and Agriculture Organization (FAO) reported this morning that its global food price index rose to 216 in September, + 1.4% (3 pts) from August. The rise is attributed to higher prices for meat, dairy and cereal grains.
The FAO also forecast that world cereal production would decline by 2.6% from the record total posted in Y 2011 to 2.286-M metric tons.
Corn and other coarse grain production is expected to drop by 2.3%, Wheat production is forecast to fall 5.2%, and Rice production is expected to remain unchanged.
The food price index is more than 9% lower than its peak in February 2011 and 4% lower than it was in September 2011. But the FAO is concerned that prices will turn back upward in the near future:
While shrinking Maize export availabilities and high Maize prices have been leading cereal markets in recent months, tightening Wheat supplies have also become a concern. Nonetheless, international Wheat prices fell towards 2-H of the month, following the announcement by the Russian Federation that it would not impose restrictions on exports.
The Teucrium Corn Fund (NYSEMKT:CORN) closed down 0.1% last night at 42.29 in a 52-wk range of 35.24 to 52.69. The Teucrium Soybean Fund (NYSEMKT:SOYB) closed up 0.25% last night at 25.80 in a 52-wk range of 20.42 to 28.85.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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