World food prices fell by 10.7% in November this year compared to the same month last year, unchanged from the revised October level. Their index stood at 120.4 points, according to the FAO (UN Food and Agriculture Organization) report.
The grain price index was 3% below October’s level and 19.4% below last year’s record high. World prices for coarse grains fell most significantly over the month – by 5.6%, primarily due to a sharp drop in global corn prices.
The vegetable oil price index increased 3.4% year-on-year in October after three months of continuous decline. This was due to the increase in world prices for palm and sunflower oils, which more than compensated for the decrease in quotations of soybean and rapeseed oils. Dynamics of price changes in annual terms is not given.
The price index for dairy products in November increased by 2.2% as compared with October. The growth continues for the second month in a row. But in annualized terms, prices fell 16.9%. “In November, there was an increase in global quotations of butter and skim milk powder, which was due to high import demand from Northeast Asian countries, limited stocks and increased domestic demand ahead of winter holidays in Western Europe,” the document explained.
The meat price index was 0.4% lower last month compared to October and 2.4% lower compared to November last year. These figures reflect a slight decrease in prices for poultry, pork and beef.
The sugar price index in November was up 1.4% from October and up 41.1% on a year-over-year basis. “The increase in sugar prices recorded in November was mainly due to growing concerns about a reduction in global export supply this season amid deteriorating crop outlooks in Thailand and India, which are major exporters,” the report said.
The FAO Food Price Index is a weighted average that tracks international price movements for five major food commodity groups.
grain price, meat price index, price index for dairy products, sugar price, vegetable oil price index, World food prices
Successful exports of Ukrainian grain under the Black Sea Grain Initiative have helped to reduce world prices and strengthen food security, according to a report published on Twitter by the Ministry of Defense of the United Kingdom of Great Britain and Northern Ireland on Friday.
“During this initiative, more than 32 million tons of food entered the world market, and the food price index fell by 23% compared to its peak in March 2022. Developing countries have particularly benefited from lower prices, as well as from direct grain imports from Ukraine,” the statement said.
At the same time, Russia’s withdrawal from the Black Sea Grain Initiative has led to a reduction in exports from Ukraine, which, according to British intelligence, “is a clear attempt to degrade the Ukrainian economy and its ability to maintain its military capabilities.”
The report emphasizes that the agricultural sector accounted for 40% of Ukraine’s exports before the war and remains vital to the country’s economy. In total, food exports from Ukraine amounted to $28 billion in 2021.
“Ukraine has succeeded in using alternative methods of grain exports, such as river, rail, and road transport; however, it is unlikely that this will match the capacity of the Black Sea export routes,” the British intelligence service said.
World food prices, which rose by 1.3% in July, returned to the previous trend in August, falling by 2.1% in monthly terms, according to a review by FAO (the Food and Agriculture Organization of the United Nations).
The index of world food prices in August amounted to 121.4 points, which is 2.1% lower than in July and 24% lower than the maximum level of March 2022. “Thus, the increase in the index observed in the previous month was leveled. The recorded decline is due to a drop in prices for dairy products, vegetable oils, meat and cereals amid a moderate increase in the sugar price index,” the document says.
The grain price index in August decreased by 0.7% compared to July and by 14.1% in annual terms. World wheat prices fell by 3.8%, largely due to increased supply from active seasonal crop supplies from several leading exporting countries in the Northern Hemisphere. Corn prices declined for the seventh consecutive month and reached their lowest level since September 2020.
Rice prices, on the other hand, increased by 9.8% compared to July and became the highest in the last 15 years. This is due to trade disruptions recorded after India imposed a ban on the export of Indian white rice in July.
The vegetable oil price index in August decreased by 3.1% compared to July after a short-term increase in July. This reflected a drop in global prices for palm, sunflower, soybean, and rapeseed oil. For example, global prices for sunflower oil fell by almost 8% due to weaker import demand amid high supply from major exporters.
The price index for dairy products fell by 4% last month. This is the eighth consecutive month of decline. Compared to August last year, it was 22.4%. In August, whole milk powder fell the most, due to significant supply, especially from Oceania, during the seasonal increase in production and under the influence of a decrease in imports by China.
Global skimmed milk powder prices reached their lowest level since mid-2020 due to sluggish import demand and weak market activity in Europe. Global prices for butter and cheese also fell due to similar factors.
The meat price index in August decreased by 3% compared to July and by 5.4% in annual terms. Lamb prices showed the largest decline, largely driven by a sharp rise in export supply, primarily from Australia, and weaker demand from China. The fall in pork prices was primarily due to low demand from major importing countries and strong export supply in Europe amid declining domestic sales. Poultry prices declined due to strong supply, especially from Brazil. Beef prices fell due to the high number of slaughter animals in a number of major producing countries and weak import demand.
In August, the sugar price index increased by 1.3% compared to July and by 34.1% in annual terms. This was mainly due to growing concerns about the El Niño weather phenomenon, which could lead to a decrease in expected global production.
The FAO Food Price Index is a weighted average indicator that tracks the dynamics of international prices for five major food commodity groups.
World food prices in August decreased by 1.9% compared to July. Prices have been falling for the fifth month in a row after the all-time high recorded in March.
According to the FAO (Food and Agriculture Organization of the United Nations), the food price index in August amounted to 138 points, which is 1.9% lower than in July. But it remains 7.9% higher than in August last year.
The grain price index in August fell by 1.4% compared to July, but remained 11.4% above the level of August 2021. In August, international wheat prices fell 5.1%. This indicator has been declining for the third month in a row, due to improved crop prospects, especially in Canada, the US and the Russian Federation. At the same time, wheat prices are 10.6% higher than in August last year.
Global corn prices edged up 1.5% in August, largely driven by lower crop prospects in the EU and US due to hot and dry conditions, while resumption of exports from Ukraine prevented prices from rising even higher, the report says.
The price index for vegetable oils in August decreased by 3.3% compared to July, but remains above the level of the previous year. The fall was due to a decrease in world prices for palm, sunflower and rapeseed oils. Soybean oil quotes rose.
The price index for dairy products in August fell by 2% compared to July. The decline continues for the second month in a row, but prices are still 23.5% higher than in the corresponding period last year.
The meat price index in August fell by 1.5%, but it is still 8.2% higher than in August last year. “In August, international quotations of poultry meat fell sharply, which is associated with a reduction in purchases by leading importers amid higher export supply. The decline in world prices for beef is attributed to weak domestic demand in some leading exporting countries, which led to an increase in their export offer , and some increase in supplies from Australia, with pork quotes rising on continued low supply of ready-to-slaughter pigs, while a modest increase in mutton prices due to increased import demand from some European countries, which helped to offset the reduction in purchases from China “, the review says.
The sugar price index in August fell by 2.1%. This index has been falling for the fourth month in a row and has reached its lowest level since July 2021. This is due to an increase in the marginal volume of sugar exports from India and a decrease in ethanol prices in Brazil, which suggests that the volume of sugar cane used for sugar production will also increase, FAO experts say.
The FAO Food Price Index is a weighted average that tracks international price movements for five major food commodity groups.
