According to data collected by the Food and Agriculture Organization of the United Nations (FAO), the benchmark index of global food prices soared during the month of October 2024 reaching its highest level for 18 months.
With the exception of meat, prices of all products increased last October, according to the FAO
It averaged 127.4 points in October, 2% more than in September and 5.5% more than its value recorded a year ago. The index, however, remained 20.5% lower than its peak in March 2022.
This surge is explained by the sharp rise in the prices of vegetable oils, the index of which rose by 7.3% (10.4 points) in October, thus reaching its highest level in two years, according to the UN institution specifying that the evolution of the prices of this product is the consequence of “the rise in the prices of palm, soybean, sunflower and rapeseed oils, mainly fueled by concerns about production”.
As the FAO notes in its bulletin, “international palm oil prices continued to rise for the fifth month in a row in October, mainly due to fears over lower-than-expected production. coinciding with an expected seasonal decline in production in the main producing countries of Southeast Asia.
Mainly supported by the outlook for a drop in supply due to the reduction in production expected in 2024-2025, world prices of sunflower and rapeseed oil continued to rise during the same period. .
As for global soybean oil prices, data shows they have “increased due to strong global demand and limited supply of alternative vegetable oils,” the organization explained.
Data from the UN agency also shows that the FAO cereal price index gained 0.9% in October, mainly due to the increase in export prices of wheat and corn.
In detail, “global wheat prices increased for the second consecutive month, mainly due to concerns over poor weather conditions affecting plantings for winter crops in several major exporting regions in the northern hemisphere, including the European Union, the Russian Federation and the United States of America.
Under the effect, in particular, of strong domestic demand in Brazil and transport difficulties in certain regions of the country due to low water levels, world corn prices also continued their upward trend. in October.
However, the data suggests a decline of 5.6% in the FAO price index for all types of rice over the past month, following the plunge in “indica rice prices linked to expectations of increased competition between exporters after India lifted export restrictions on unbroken rice,” the FAO said.
As for the FAO sugar price index, it rose by 2.6% (+3.3 points), against a backdrop of persistent fears about the production outlook for 2024-2025 in Brazil, which following a prolonged period of dry weather. This is the second consecutive monthly progression of this index, the value of which however remains 29.6 points (18.6%) lower than that recorded a year ago, notes the organization.
Thanks mainly to the increase in international prices of cheese and butter, while the prices of milk powders fell, the FAO Dairy Price Index increased by 1.9% (2.5 points) over of the month of October. It was thus located 21.4% above its value recorded last year on the same date.
Posting an average value of 120.4 points in October, the FAO meat price index lost 0.3% compared to September. This decline is mainly explained by the fall in pork prices.
Under pressure from an increase in exportable supplies from the main world producers, world prices for poultry meat have for their part fallen slightly; while those for sheep meat remained generally stable.
“In contrast, international prices for bovine meat increased slightly, driven by stronger international purchases,” noted the international institution.
Alain Bouithy
