FAO food price index at 18-month high in Oct on high cereal, vegetable oil prices
This story was originally published at 20:28 IST on 8 November 2024
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MUMBAI – The UN Food and Agriculture Organization's food price index rose 2% on month to 127.4 points in October because of an increase in prices of cereals, vegetable oils, dairy products, and sugar. This is the highest level of the index since April 2023. The food price index in October was 5.5% higher than a year ago but 20.5?low its peak of 160.2 points touched in March 2022, the organisation said in a report.
The cereal price index averaged 114.4 points in October, up 0.8% from a month ago but still 8.3?low its October 2023 value. Global wheat prices rose for the second straight month due to concern over unfavourable weather conditions affecting winter crop sowing in several major northern hemisphere exporters, including the European Union, Russia and the US, the report said.
Global maize prices also increased on month due to strong domestic demand in Brazil and transport challenges in some parts of the country due to low river levels. Prices also got support from dry conditions impeding planting in Argentina and steady demand for Ukrainian maize, the report said. The FAO All Rice Price Index fell 5.6% in October because of lower quotations for Indica rice driven by expectations of increased competition among exporters following India's removal of export restrictions on non-broken rice.
The vegetable oil price index rose 7.3% on month to 152.7 points in October, marking a two-year high. The rise was driven by higher quotations across palm, soybean, sunflower, and rapeseed oils, the report said. Global palm oil prices rose for the fifth consecutive month in October due to concern over lower-than-expected production and seasonal production declines in major Southeast Asian producing countries, it said.
The dairy price index averaged 139.1 points in October, up 1.9% on month and 21.4% on year, the agency said. Among the dairy basket, global cheese prices rose the most due to limited availability of supplies to meet import demand for spot supplies amid strong internal sales, especially in the European Union, where milk production fell seasonally.
The meat price index was at 120.4 points in October, down 0.3% on month but up 7.5% on year. Global poultry meat prices fell slightly due to higher export supplies from major global producers.
The sugar price index averaged 129.6 points in October, up 2.6% on month but down 18.6% from a year ago. The index recorded the second consecutive monthly increase, the report said. Global sugar prices rose over persisting concerns over 2024-25 production outlook in Brazil, following a prolonged period of dry weather conditions. Prices were also supported by higher crude oil prices which stimulate a greater use of sugarcane for ethanol production in Brazil. End
US$1 = INR 84.38
Reported by Ashutosh Pati
Edited by Akul Nishant Akhoury
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