The oil market rally prompted by Middle East unrest has worsened further prospects for world food security, the United Nations said, as it revealed that the cost of eating had reached a fresh record high.
The rise in prices of Brent crude by some 13% over the last two weeks, with New York crude jumping 18%, had come at an inopportune moment from crop production terms, as North Hemisphere growers are planning sowing campaigns, the UN's Food and Agriculture Organization said.
"This adds even more uncertainty concerning the price outlook, just as plantings for crops in some of the major growing regions are about to start," said David Hallam, director of the FAO's trade and market division.
And further "spikes" in oil prices "could further exacerbate an already precarious situation in food markets", Mr Hallam added.
Besides raising farm fuel bills, oil costs also have a bearing on the costs of fertilizers and sprays, so posing a significant upward threat to growers' cost of production.
No comments:
Post a Comment