November Global food price rise of 3.6% is approaching last crisis level

The United Nations Food and Agriculture Organization (UNFAO) said recently that global grain prices rose by 3.6% in November, close to the peak levels during the 2007-2008 crisis. The November FAO food Price Index--consisting of a basket of agricultural products, including wheat, corn, rice, oilseeds, dairy products, sugar and meat--rose to 205.4 points, less than 4% per cent of the 213.5-point record reached in June 2008, the FT reported. "The situation is increasingly disturbing," said Apdul-Abbasian, a senior FAO cereal economist. "As the FAO report on December 1, new concerns about crop production have pushed prices up again. Wheat prices are the lead of the rally amid concerns about bad weather in major wheat-exporting countries. The Chicago Futures Exchange's December contract price rose by as much as 8% to 7.0275 U.S. dollars a bushel, which was the first time in two weeks that wheat trading had been priced at more than 7 dollars.　　The price of European milling wheat Futures, which was delivered in Paris in March, rose 2.5% per cent to 288.50 euros a tonne, approaching a two-year high. reported that the focus of anxiety is that the northern hemisphere's arid climate will affect the United States, Russia and other grain-producing countries next year's winter wheat harvest, these wheat has just been sown.　　In the southern hemisphere, the drought in Argentina and the rain in eastern Australia have also exacerbated anxiety. Under the guidance of wheat, food crops prices have soared.　　The Chicago Futures Exchange's December contract price rose 3.2% to 5.47 U.S. dollars per bushel, and the Chicago Board of Exchange soybean January contract price rose 2.8% to 12.7825 dollars per bushel, and the price of palm oil futures in Kuala Lumpur rose 2.2% to 3486 ringgit per ton. Analysts say the rise in food prices or the growing concern among people in countries such as India about the inflation rate has raised concerns again. The food riots that took place two years ago in poor countries, from Bangladesh to Haiti, could be repeated.