The prices of global food products have reached their highest level in 18 months, driven by the jump in the price of vegetable oils, although all commodities, with the exception of meat, are seeing their prices rise.
According to the numbers published on November 8 by the Food and Agriculture Organization of the United Nations (FAO), the prices of world food products recorded an increase of 2% in October compared to September. This also represents a jump of 5.5% compared to October 2023, but a clear decline of 20.5% compared to the peak reached in March 2022.
Oils at their highest
Oil prices rose 7.3%, reaching their highest level in two years. This is explained by the rise in prices of palm, soya, sunflower and rapeseed oils; phenomenon arising from concerns about production.
Cereals recorded a moderate increase (+0.9%), resulting from the increase in export prices of wheat and corn. Wheat prices were influenced by three factors. First, the poor weather conditions observed in several major exporting regions in the northern hemisphere. Added to this is the re-establishment of an unofficial floor price in Russia. Finally, the explanations can be found in the renewed tensions in the Black Sea region.
World corn prices also increased, driven in particular by strong domestic demand and transport difficulties encountered in Brazil due to low river levels. In contrast, prices of all types of rice fell 5.6% in October.
The price of sugar rose by 2.6%, amid persistent fears about the production outlook for 2024-2025 in Brazil. These follow a prolonged period of dry weather. The rise in international crude oil prices was another factor in the rise in sugar prices. In fact, this increase leads to a reorientation of sugar cane cultivation towards the production of ethanol. The FAO notes, however, that the weakening of the Brazilian real against the dollar has moderated this increase.
Pigs and poultry in decline
Dairy products saw their prices increase by 1.9% and were 21.4% above their value recorded last year at this time. This trend is mainly explained by the rise in the prices of cheese and butter, while conversely, the prices of milk powders have fallen.
Against this generalized upward trend, meat prices lost 0.3% compared to September. This is mainly the result of the fall in pigmeat prices, itself resulting from an increase in slaughters in Western Europe in a context of weak domestic and international demand. World prices for poultry meat fell slightly, while those for sheep meat remained stable. On the other hand, beef prices increased moderately, driven by stronger international purchases.
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