The Food Price Index, compiled by the United Nation’s Food and Agricultural Organisation (FAO) shows today (Friday, November 8) that international prices for some key food commodities have soared.
The index, a measure of the monthly change in international prices of a basket of food commodities, averaged 127.4 points in October 2024, up 2% from its revised September level and the highest since April 2023.
A sharp increase in vegetable oil quotations drove the increase in the index – specifically increased by 7.3% in October – hitting a two-year high – as a result of rising quotations for palm, soy, sunflower and rapeseed oil.
FAO Dairy Price Index
Specificially the FAO Dairy Price Index shows an increase of 1.9% in October, at least 21.4% above its level the same time last year.
The FAO Dairy Price Index stood at 139.1 points in October, up 2.5 points from September and 24.5 points higher than its value a year ago.Â
According to the FAO international cheese prices registered the largest increase, which it said reflected “limited availability of supplies to meet import demand for spot supplies amid strong internal sales”.
This was especially evident in the European Union, where milk production fell seasonally.
“World butter prices also rose in October for the 13th consecutive month, driven by high internal demand, limited inventories, and seasonally low milk production in western Europe.
“By contrast, price quotations for milk powders, especially skim milk powder, declined due to rising seasonal milk production in Oceania and weak global import demand,” the FAO stated.
However in contrast the FAO Meat Price Index fell marginally – to 120.4 points in October,from the revised September value and 8.4 pointsabove its level a year ago.
” International pig meat prices fell the most, reflecting increased slaughter in Western Europe amid weak domestic and foreign demand.
“World poultry meat prices fell slightly, pressured by higher export supplies from major global producers,” the FAO outlined.
It also highlighted that international price quotations for “bovine meat increased moderately, underpinned by stronger international purchases”.Â
Cereal
The FAO Cereal Price Index averaged 114.4 points in October which was 10.3 points below its October 2023 value.
“Global wheat prices increased for the second consecutive month, mostly reflecting concerns over unfavourable weather conditions affecting winter crop sowing in several major northern hemisphere exporters, including the European Union, the Russian Federation and the United States of America,” the FAO stated.
It also warned that the the re-introduction of an unofficial price floor in the Russian Federation and rising tensions in the Black Sea region “exerted upward pressure on prices”.
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