The Food and Agriculture Organization of the United Nations (FAO) has released its monthly Food Price Index, which monitors changes in the international prices of a basket of globally-traded food commodities. The latest report shows a mix of increases and decreases across different food categories.
In the cereals sector, the FAO Cereal Price Index saw a decrease of 3% from October. This decline was led by a significant 5.6% drop in the prices of coarse grains, with maise prices experiencing a sharp fall. Wheat prices also declined, though more modestly, by 2.4% in November.
Conversely, the Vegetable Oil Price Index witnessed an increase of 3.4% from October. This rise was primarily driven by a rebound in international palm oil prices, which surged by over 6% in November.
The increase in palm oil prices is attributed to more active purchases by major importing countries and seasonally lower production in key producing nations.
The dairy sector also experienced an uptick, with the FAO Dairy Price Index rising by 2.2% from October. This increase was fuelled by strong import demand for butter and skim milk powder, particularly from Northeast Asian buyers, and heightened internal demand in Western Europe ahead of the winter holidays.
The Sugar Price Index rose by 1.4% month-on-month, standing 41.1% higher than its level in the same month last year.
This significant year-on-year increase was influenced by concerns over global export availability, exacerbated by deteriorating production prospects in Thailand and India due to severe dry weather conditions linked to the El Nino event.
Meanwhile, the FAO Meat Price Index saw a slight decrease of 0.4% from October. This marginal dip reflects minor drops in the world prices of poultry, pig, and bovine meats, primarily due to ample exportable supplies.
Overall, the FAO’s latest Food Price Index indicates a steady global food market with specific commodities experiencing varying degrees of price fluctuation. These changes reflect a complex interplay of market forces, including seasonal production shifts, international demand, and climatic events.
