World food commodity prices ticked higher for the third consecutive month in November, rising to the highest since April 2023 on the strength of surging world vegetable oil values.
The Food and Agriculture Organization of the United Nations reported last week that its food price index - which tracks monthly changes in the international prices of a set of globally traded food commodities - averaged 127.5 points in November. That is up 0.5% from October and follows on the heels of a 2% increase in October and a 3% gain in September. The index, which is up 5.7% from a year ago but still 20.4% below its March 2022 peak, declined slightly in August.
Much of the overall food price gain was due to the vegetable oil price index, which jumped 7.5% in November and now sits almost one-third higher than last year. Global palm oil prices climbed further last month amid concerns about lower-than-expected output due to excessive rainfall in Southeast Asia. Meanwhile, world soyoil prices rose on global import demand, while rapeseed and sunflower oil values increased as tightening global supply prospects affected their respective markets, the FAO said.
On the other hand, The FAO cereal price Index fell 2.7% in November and is now 8% below a year earlier. The decline in the cereal index was at least partially driven by lower global wheat prices which declined due to weaker international import demand and increased supplies from the ongoing harvests in the Southern Hemisphere. Prices for rice also declined in November, while world corn prices were stable.
The meat price index eased 0.8% in November, due mainly to lower quotations for pork in the European Union, reflecting abundant supplies and persistently subdued global and domestic demand. The sugar price index was down 2.4% in November and the dairy index was up 0.6%.
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