Prices Hold Steady in November After Three Consecutive Months of Decline Through October
Last month, the global food price index recorded 120.4 points, the same as the previous month. Prices of grains and meat declined, while prices of oils, dairy products, and sugar increased.
According to the Ministry of Agriculture, Food and Rural Affairs on the 9th, the November global food price index announced by the United Nations Food and Agriculture Organization (FAO) was 120.4 points, the same as the previous month. After three consecutive months of decline since July (124.1 points), it showed a steady trend this time.
The FAO surveys 95 international price trends for 24 items and publishes monthly food price indices by five commodity groups: ▲grains ▲oils ▲meat ▲dairy ▲sugar. The average value from 2014 to 2016 is set at 100, and values above this indicate an increase, while values below indicate a decrease.
The global food price index, which had been rising since COVID-19, surged to an average of 143.7 points last year due to Russia's invasion of Ukraine. This year, it has shown a relatively downward trend, reaching its lowest point since March 2021 (119.2 points).
World Food Price Index by Year and Item / [Image provided by Ministry of Agriculture, Food and Rural Affairs]
By item, the grain price index in November was 121.0 points, down 3.0% from the previous month (124.8 points). This was due to declines in international wheat and corn prices this month. The international rice price remained at a similar level to the previous month.
The oils price index rose 3.4% from the previous month (120.0 points) to 124.1 points. Palm oil prices increased, and sunflower oil prices also rose as import demand was maintained. On the other hand, prices of soybean oil and rapeseed oil declined.
The meat price index also fell 0.4% from the previous month (112.3 points) to 111.8 points. Although avian influenza occurred in several countries affecting poultry, prices dropped due to increased supply from Brazil. Pork and beef prices also declined.
The dairy price index rose 2.2% from the previous month (111.7 points) to 114.2 points, driven by increases in butter and skim milk powder prices. The sugar price index also rose 1.4% from the previous month (159.2 points) to 161.4 points.
Meanwhile, the UN FAO forecasted that global grain production for 2023?2024 will increase by 0.9% compared to 2022?2023, reaching 2.823 billion tons. During the same period, global grain consumption is expected to rise by 1.1% to 2.8128 billion tons. Global grain ending stocks are projected to increase by 2.7% to 886.5 million tons.
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