Global food prices in November rose 1.2% compared to October, and were at their highest level since June 2011 (unadjusted for inflation), the United Nations Food and Agriculture Organization (FAO) said in its monthly report on December 2. After adjusting for inflation, 2021 food prices averaged for the 11 months of 2021 are the highest in 46 years.

The high prices come despite expectations that total global production of grains in 2021 will set an all-time record: 0.7% higher than the previous record set in 2020. But because of higher demand (in part, from an increased amount of wheat and corn used to feed animals), the 2021 harvest is not expected to meet consumption requirements in 2021/2022, resulting in a modest drawdown in global grain stocks by the end of 2022, to their lowest levels since 2015/2016.

The November increase in global food prices was largely the result of a surge in prices of grains and dairy products, with wheat prices a dominant driver. In an interview at fortune.com, Carlos Mera, head of agri commodities market research at Rabobank, blamed much of the increase in wheat prices on drought and high temperatures hitting major wheat producers including the U.S., Canada, and Russia.

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