World food prices remained stable in November, according to a report by the United Nations Food and Agriculture Organization (FAO). The FAO’s price index, which tracks the most globally traded food commodities, held steady at an average of 120.4 points, similar to October’s levels, which were the lowest since March 2021. Although there was a decline of 10.7% compared to last November, lower international cereal prices offset higher prices of vegetable oils.
The price of cereals decreased by 3.0% in November, driven by a sharp fall in maize prices, while wheat prices declined by 2.4%. In contrast, vegetable oil prices rose by 3.4% from October, mainly due to increased purchases by leading importing countries and lower outputs in major producing countries, particularly palm oil.
The FAO reported a 2.2% rise in its dairy price index from October, attributed to high demand for butter and skimmed milk powder in Northeast Asia, as well as increased pre-holiday demand in Western Europe. Sugar prices also increased by 1.4% month-on-month in November, averaging 41.1% higher than the same period last year. This rise was attributed to worsening production prospects in Thailand and India.
In a separate report on cereal supply and demand, the FAO raised its forecast for world cereal production this year to a record 2.823 billion metric tons, representing a 0.9% increase from 2022. The agency highlighted ongoing planting of the 2024 winter wheat crop in the northern hemisphere. However, it noted that the area growth could be limited due to lower crop prices.
Despite this, the FAO projected a 2.7% increase in world cereal stocks by the end of the 2024 season. The cereal stock-to-use ratio is also expected to reach 30.8% in 2023/24, indicating a comfortable supply level.
The FAO’s findings provide valuable insights into global food prices, particularly in relation to cereals, vegetable oils, dairy, and sugar. The stable overall price index suggests a balanced market, with impacts from lower cereal prices being offset by higher prices for vegetable oils. These factors play a crucial role in international trade and have direct implications for consumers worldwide.
As the FAO continues to monitor food prices and global supply and demand trends, stakeholders across the agricultural industry can utilize this information to make informed decisions. By maintaining clear and concise reporting on these developments, the FAO contributes to a transparent and efficient global food market.
Overall, while some categories experienced fluctuations, the FAO’s November report indicates a steady trend in world food prices. With cereal prices on a slight decline but vegetable oil prices on an upward trajectory, the FAO’s data provides valuable insights for the agricultural sector, policymakers, and consumers around the world.
