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Informist, Friday, Dec. 6, 2024

MUMBAI – The UN Food and Agriculture Organization's Food Price Index rose 0.5% on month to 127.5 points in November, reaching its highest value since April 2023, the organisation said in a report. This is mainly due to an increase in prices of vegetable oils and dairy products, which slightly outweighed declines in meat, cereals, and sugar quotations. The Food Price Index in November was 5.7% higher than a year ago but 20.4% below its peak of 160.2 points touched in March 2022, the organisation said in the report.

The Cereal Price Index averaged 114.4 points in November, down 3% from a month ago and 8% on year. Global wheat prices declined month-on-month due to increased supplies from the ongoing harvests in the southern hemisphere and improved crop conditions for the 2025 harvests in some major northern hemisphere exporting countries, the report said. Moreover, weak international demand contributed to softer prices, it added.

Global maize prices remained stable on month in November. However, downward pressure on prices stemmed from favourable weather in South America with the continuing sowing, weak demand for Ukrainian supplies, and seasonal pressure from the ongoing harvest in the US. On the other hand, firm domestic demand in Brazil and Mexico for US supplies provided upward support, the report said. Among other coarse grains, world prices of barley and sorghum declined slightly in November, it said. 

The FAO All Rice Price Index fell 4% in November because of increased market competition, harvest pressure, and currency depreciations against the US dollar.

The Vegetable Oil Price Index rose 7.5% on month to 164.1 points in November, reaching its highest level since July 2022. The rise was driven by higher quotations for palm, rapeseed, soybean, and sunflower oils, the report said. Global palm oil prices rose for the sixth consecutive month in October due to concern over lower-than-expected production amid excessive rainfall in Southeast Asia, it said. Similarly, global soyoil prices also increased due to robust import demand. Rapeseed and sunflower oil prices also increased, reflecting prospects of tightening global supplies.

The Dairy Price Index averaged 139.9 points in November, up 0.6% on month and 23.4% on year, the agency said. International quotations for milk powders, in particular whole milk powder, increased significantly due to robust global demand and the seasonal decline in milk production in Western Europe, which offset rising seasonal milk production in Oceania. Global butter prices increased for the fourteenth consecutive month, making a new record due to firm internal and international demand amid tight inventories, particularly in Western Europe. Further, cheese prices also rose, reflecting limited availability to meet growing import demand for spot supplies, it said. 

The Meat Price Index was at 118.1 points in November, down 0.8% on month, but up 6.6% on year. This decline can be attributed to lower international pig meat prices, which fell for the fifth consecutive month. Pig meat prices mainly fell in the European Union due to abundant supplies and subdued global and domestic demand. Similarly, ovine meat prices declined slightly in November, influenced by currency movements despite strong international demand. Further, world poultry meat prices fell due to huge export supplies from major producing regions. However, international bovine meat prices remained steady during the month. 

The Sugar Price Index averaged 126.4 points in November, down 2.4% on month and 21.7% lower from a year ago. The decline in November is attributed to the start of the crushing season in India and Thailand, along with eased concerns over next year’s crop prospects in Brazil, it said. Moreover, lower international crude oil prices contributed to the decline in world sugar prices. Sugar and crude oil prices are related as crude oil impacts the cost and demand for ethanol, a biofuel made from sugarcane or corn.  End

Reported by Anjali Lavania

Edited by Deepshikha Bhardwaj

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