According to the Food and Agriculture Organization of the United Nations – FAO global food prices remained largely stable in November, with a decline in international grain prices offset by higher prices for vegetable oils.
The FAO Food Price Index, which tracks monthly changes in international food prices, averaged 120.4 points in November, unchanged from the previous month, and was 10.7% lower than in November 2022.
The FAO Grain Price Index decreased by 3% compared to October. International feed grain prices fell by 5.6% due to a sharp drop in corn prices, while wheat prices fell by 2.4% in November. The FAO Rice Price Index remained stable amid contrasting price fluctuations in different countries of origin and market segments.
Vegetable oil price index increased
The price index for vegetable oil increased by 3.4% compared to October. International prices for palm oil recovered by over 6% in November, mainly due to more active purchases by major importing countries and seasonal production declines in major producing countries. Global prices for sunflower oil rose moderately, while prices for soybean and rapeseed oils declined slightly in November.
At the same time, the FAO Dairy Price Index increased by 2.2% compared to October due to high import demand for butter and skimmed milk powder from buyers in Northeast Asia, as well as increased domestic demand ahead of the winter holidays in Western Europe.
Sugar index rose
The FAO Sugar Price Index rose by 1.4% month-on-month, averaging 41.1% higher in November than in the same month last year. This was influenced by concerns about global export supply amid deteriorating production prospects in the two leading exporting countries – Thailand and India – due to severe dry weather conditions associated with the El Niño phenomenon.
The FAO Meat Price Index fell by 0.4% compared to October, reflecting a slight drop in world prices for poultry, pigs and cattle, largely due to a large export supply.