Global Food Prices Continue Downward Trend, Bucked Only by Cereals

Global food commodity prices declined for the third consecutive month in November, except for cereals. The FAO Food Price Index registered a drop, influenced by falling sugar, dairy, vegetable oil, and meat prices, while cereal prices rose due to demand factors and geopolitical tensions.

For the third consecutive month, global food commodity prices witnessed a decline in November, except for cereals, according to the United Nations' Food and Agriculture Organization (FAO).

The FAO Food Price Index, which monitors globally traded food commodities, stood at 125.1 points in November, marking a decrease from October's revised 126.6 points, making it the lowest since January. This November figure also reflected a 2.1% reduction from the previous year and a significant 21.9% fall from the peak in March 2022, following Russia's invasion of Ukraine.

Sugar prices experienced a notable 5.9% drop to their lowest level since December 2020, and dairy prices fell by 3.1% due to increased milk production and export supplies. Vegetable oil prices, with the exception of soyoil, decreased by 2.6%. Meat prices also dipped by 0.8%, led by declines in pork and poultry prices, while beef prices stabilized after the U.S. tariff removal. Conversely, cereal prices increased by 1.8% monthly, driven by potential demand from China, geopolitical tensions, and weather-related disruptions affecting South American maize exports.

(With inputs from agencies.)