x Abu Dhabi, UAEWednesday 17 January 2018

Cotton and corn prices soar

A global commodities rally has taken its toll on food prices.

Food prices have soared this year as a global commodities rally has taken hold.

Corn prices have risen 15.3 per cent so far this year compared with a year earlier, data from Standard & Poor's GSCI commodity index shows.

Coffee has risen 8 per cent, with cotton increasing 17.8 per cent over the same period.

The UN Food and Agriculture Organization food price index continued at high levels last month and was up 36 per cent on April last year.

At 232 points, the index was virtually unchanged from March, when it fell slightly following eight months of successive increases.

Decreases in the price of sugar, dairy and rice were offset by rising grain prices.

Input costs for both UAE and Saudi Arabian companies have been rising so far this year, according to the HSBC's purchasing managers' index.