World Food Prices Reach 18-Month High in October, Led by Vegetable Oils – FAO
Source: DairyNews.today
Global food prices rose to an 18-month high in October, driven primarily by increases in vegetable oils, according to United Nations data.
The UN Food and Agriculture Organization (FAO) reported its food price index, which monitors the prices of globally traded food commodities, climbed to 127.4 points last month, marking a 2% increase from a revised 124.9 in September. This latest figure represents a 5.5% rise compared to October 2022 and is the highest level since April 2023. However, the index remains 20.5% below the record set in March 2022 after the onset of the Russia-Ukraine conflict.
The price increase was broad-based, with all food categories except meat experiencing growth. Vegetable oils saw the steepest monthly rise, jumping over 7% due to concerns over palm oil production. The index’s October increase extends gains seen in September, which reached a high last seen in July 2023, partly due to surging sugar prices.
Sugar prices continued their upward trend with a 2.6% increase in October, fueled by concerns over the 2024/25 production outlook in Brazil. Cereals rose 0.8% from September, as wheat prices increased amid worries over northern hemisphere planting conditions and the introduction of an informal Russian export price floor. Maize prices also edged higher.
Dairy prices climbed nearly 2%, supported by strong demand and constrained supply in cheese and butter, according to the FAO. Meanwhile, meat prices slipped by 0.3%, with pork and poultry prices both declining, contrasting with beef, which saw gains due to higher international demand.
Separately, the FAO trimmed its forecast for global cereal production in 2024, lowering it to 2.848 billion metric tons from the previous month’s estimate of 2.853 billion. Although down 0.4% from the previous year, the revised outlook would still make it the second-largest global cereal output on record.
The price increase was broad-based, with all food categories except meat experiencing growth. Vegetable oils saw the steepest monthly rise, jumping over 7% due to concerns over palm oil production. The index’s October increase extends gains seen in September, which reached a high last seen in July 2023, partly due to surging sugar prices.
Sugar prices continued their upward trend with a 2.6% increase in October, fueled by concerns over the 2024/25 production outlook in Brazil. Cereals rose 0.8% from September, as wheat prices increased amid worries over northern hemisphere planting conditions and the introduction of an informal Russian export price floor. Maize prices also edged higher.
Dairy prices climbed nearly 2%, supported by strong demand and constrained supply in cheese and butter, according to the FAO. Meanwhile, meat prices slipped by 0.3%, with pork and poultry prices both declining, contrasting with beef, which saw gains due to higher international demand.
Separately, the FAO trimmed its forecast for global cereal production in 2024, lowering it to 2.848 billion metric tons from the previous month’s estimate of 2.853 billion. Although down 0.4% from the previous year, the revised outlook would still make it the second-largest global cereal output on record.
