The FAO’s latest monthly food prices index report, out Feb. 4, showed food prices for major commodities, continuing to rise for the 8th month in a row, as of January. The FAO Cereal Index (corn, wheat, rice and others) went up a significant 7.1% just from December 2020 to January 2021. Corn prices rose over 11% just in that month-to-month span. Food prices overall rose over 4% from December 2020 to January 2021. Year on year, there are some notable increases. The price of corn, for example, was over 42% higher in January 2021, than it was the same month the year prior.
For many reasons the already inadequate world grains harvest—measured by what is required for a good diet for all people, security reserves, carryover, animal protein, etc., is increasingly short. Russia, the world’s leading wheat exporter, will double its export duties in March, for the purpose of keeping domestic wheat milling prices at an even level.
