World food prices rose for a third straight month in October to reach a fresh 10-year peak, led again by increases in cereals and vegetable oils, the UN food agency said on Thursday, reports Reuters.
The Food and Agriculture Organization's (FAO) food price index, which tracks international prices of the most globally traded food commodities, averaged 133.2 points last month compared with a revised 129.2 for September.
The September figure was previously given as 130.0.
The October reading was the highest for the index since July 2011. On a year-on-year basis, the index was up 31.3% in October.
Agricultural commodity prices have risen steeply in the past year, driven by harvest setbacks and strong demand. read more
The FAO's cereal price index rose by 3.2% in October from the previous month. That was led by a 5% jump in wheat prices, which climbed for a fifth consecutive month to reach their highest since November 2012, FAO said.
"Tighter availability in global markets due to reduced harvests in major exporters, especially Canada, the Russian Federation and the United States of America, continued to put upward pressure on prices," FAO said of wheat.
Wheat futures started November at new peaks, with U.S. prices at fresh highs since 2012 and Paris front-month futures at a record high as import demand remained brisk.
World vegetable oil prices jumped 9.6% on the month to set a record high, supported by further strength in palm oil prices as labour shortages in Malaysia continued to hamper production, FAO said.
In contrast, global sugar prices eased 1.8% in October, ending a run of six straight monthly rises, according to FAO.
