The benchmark for world food commodity prices recorded a slight increase in November to reach its highest value since April 2023.
The Food and Agriculture Organization of the United Nations (FAO) Food Price Index averaged 127.5 points last month, up 0.5% from the October level.
The increase was driven by higher price quotations for dairy products and vegetable oils, which slightly outweighed declines in the meat, cereals, and sugar quotations.
Compared to historical levels, the food price index in November was 6% higher than its corresponding value a year ago but remained 20% below its peak of 160.2 points reached in March 2022.
Food
The FAO Cereal Price Index averaged 111.4 points in November, down 3% from October and 8% below its November 2023 value.
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 FAO added that “weaker international demand also contributed to the softer price tone”. World maize prices remained stable in November as a result of opposing factors.
The report shows that downward pressure on prices stemmed from generally favourable weather in South America with the continuing sowing, weaker demand for Ukrainian supplies, and seasonal pressure from the ongoing harvest in the US.
The FAO All Rice Price Index declined by 4%, driven by price falls across major market segments resulting from increased market competition, harvest pressure, and currency depreciations against the US dollar.
The FAO Vegetable Oil Price Index averaged 164.1 points in November, rising 11.4 points (7.5%) month-on-month to reach its highest level since July 2022.
The increase was driven by higher quotations for palm, rapeseed, soy and sunflower oils.
The FAO Dairy Price Index stood at 139.9 points in November, up 0.9 points (0.6%) from October and 23.4 points (20%) above its level a year ago.
The report outlines that international quotations for milk powders, in particular whole milk powder, registered the largest increases.
This was driven by a rebound in global demand and the seasonal decline in milk production in western Europe, which offset rising seasonal milk production in Oceania.
World butter prices increased for the fourteenth consecutive month, reaching a new record high due to strong internal and international demand amid tight inventories, particularly in western Europe.
Cheese prices also rose, reflecting limited availabilities to meet growing import demand for spot supplies.
Meat
The FAO Meat Price Index averaged 118.1 points in November, down 0.8% from the revised October value but up 6% from a year ago.
The decline was mainly due to lower international pig meat prices, which fell for the fifth consecutive month, principally driven by weaker quotations in the European Union.
Sheep meat prices declined slightly in November, influenced by currency movements despite strong international demand.
Similarly, world poultry meat prices fell marginally, pressured by ample export supplies from major producing regions.
Meanwhile, international bovine meat quotations remained broadly stable. A sharp rise in Brazilian bovine meat prices, fuelled by robust global demand, was offset by lower Australian prices due to reduced purchasing interest from the US.
The FAO Sugar Price Index averaged 126.4 points in November, down 2.4% from October, following two consecutive monthly increases.