World Food Prices Rise 0.5% in November... Highest Since April Last Year

November Global Food Price Index at 127.5 Points
Oils & Dairy Up, Grains, Meat & Sugar Down

Global food prices continued to rise, reaching their highest level since April last year.

According to the United Nations Food and Agriculture Organization (FAO) on the 7th, the global food price index for November recorded 127.5 points, up 0.5% from the previous month (127.4 points). This is the highest level since April last year (128.4).

On the 19th, as concerns over edible oil supply grow due to Indonesia's palm oil export ban, the edible oil shelves are empty at a large supermarket in Seoul. Photo by Moon Honam munonam@

The FAO surveys international price trends for 95 items across 24 categories and publishes monthly food price indices for five commodity groups: cereals, oils, meat, dairy, and sugar. The figures are based on an average of 2014?2016 set at 100 for comparison.

By commodity group, prices for cereals, meat, and sugar declined, while prices for oils and dairy increased.

The cereal price index for November was 111.4 points, down 2.7% from 114.4 points in the previous month. International wheat prices fell due to increased harvests in the Southern Hemisphere, improved crop conditions in major Northern Hemisphere exporters, and reduced international demand. Global corn prices remained stable amid opposing factors: price declines caused by favorable weather conditions in South America, weak demand for Ukrainian corn, and seasonal harvest pressure in the United States, balanced against rising domestic corn demand in Brazil and increased U.S. corn demand from Mexico. International prices for barley and sorghum also fell slightly, while the rice price index dropped 4% due to intensified competition, harvest pressure, and currency depreciation against the dollar.

The oils price index rose 7.5% to 164.1 points from 152.7 points the previous month. Prices for palm oil, soybean oil, sunflower oil, and rapeseed oil generally increased. Palm oil prices rose due to potential production declines caused by excessive rainfall in Southeast Asia, while soybean oil prices increased amid growing global import demand. Prices for sunflower and rapeseed oils rose as markets factored in possible supply reductions.

The meat price index decreased 0.8% to 118.1 points from 119.1 points the previous month. International pork prices fell due to oversupply in the European Union and persistently weak demand. Lamb prices declined slightly due to exchange rate fluctuations but demand remained strong. International poultry prices also dipped slightly due to increased supply in major production regions, while international beef prices remained generally stable.

The dairy price index for November rose 0.6% to 139.9 points from 139 points the previous month. Prices for milk powders, including whole milk powder, increased due to recovering demand and seasonal declines in milk production in Western Europe. Butter and cheese prices also rose amid overall demand growth.

The sugar price index fell 2.4% to 126.4 points from 129.6 points the previous month. International sugar prices declined as the supply season began in India and Thailand and concerns over Brazil’s next year’s crop eased. Increased rainfall in major growing regions in southern Brazil negatively affected harvests but improved soil moisture after a prolonged drought had a positive effect. Additionally, the depreciation of the Brazilian real against the dollar and falling international crude oil prices contributed to the downward trend in sugar prices.