In October, the reference value of the prices of world food products reached the highest level in the last 18 months. The rise in prices was led by a sharp rise in the prices of vegetable oils, the Food and Agriculture Organization of the United Nations (FAO) reported today.
The FAO food price index, which tracks monthly changes in international prices of globally traded food products, averaged 127.4 points in October, up 2 percent from September and up 5.5 percent from October 2023.
The FAO vegetable oil price index rose 7.3 percent in October, hitting a two-year high. The rise in prices of palm, soybean, sunflower and canola oil was caused by concerns about production. The FAO cereal price index increased by 0.9 percent in October.
This change was caused by the increase in the export prices of wheat and corn. Global wheat prices were affected by unfavorable weather conditions in the main exporters in the Northern Hemisphere, the re-introduction of an unofficial minimum price amount in Russia, as well as growing tensions in the Black Sea region.
World corn prices have also risen, partly due to strong domestic demand and transportation challenges in Brazil due to low river levels. In contrast, the FAO price index for all types of rice fell 5.6 percent in October, reflecting lower indica rice prices fueled by expectations of increased competition among exporters after India lifted restrictions on unbroken rice exports.
The FAO sugar price index rose 2.6 percent amid continued concerns about Brazil’s production outlook for the 2024/25 season, following prolonged dry weather conditions. Rising international crude oil prices also helped boost sugar prices by diverting more sugarcane to ethanol production, while the weakening of the Brazilian real against the US dollar limited price growth.
The FAO dairy price index rose by 1.9 percent in October, which is an average of 21.4 percent above the level in the same period last year. The increase was primarily caused by higher international prices of cheese and butter, while quotations of milk powder fell.
Contrary to the general upward trend, the FAO meat price index decreased by 0.3 percent compared to September, mainly due to lower pork prices. World poultry prices fell slightly in October, while sheepmeat prices remained stable.
In contrast, beef prices rose moderately, supported by strong international demand.
Source: FAO
Source: www.agromedia.rs
