FAO: Global Food Prices Rise 0.5 Percent in November

The monthly index by the United Nations Food and Agriculture Organization (FAO) saw significant gains in each of the previous three months and including November they had climbed in nine of the previous ten months, driven by extreme weather in key growing areas and rising fuel and transportation costs.

But the increase in November was modest, 0.5 percent, and mixed, with three of the five sub-indexes declining.

The biggest mover in the index was for vegetable oils, where prices climbed 7.5 percent to their highest level in more than two years. FAO said that prices for palm, rapeseed, soy, and sunflower oils all climbed amid what is called "lingering concerns" about below average global supply due to intense rains in Southeast Asia and higher import demand.

Dairy prices also rose, inching 0.6 percent higher, driven by increased demand for milk powders, combined with lower production in Western Europe.

Those two increases were enough to offset decreases in all the other sub-indexes.

Prices for grains and cereals were 2.7 percent below their levels from a month earlier and 8.0 percent lower than in November 2023. FAO said that rice prices were 4.0 percent lower based on increased market forces, while prices for wheat fell slightly. Corn prices were stable while prices for barley and sorghum both saw minor declines.

FAO said that sugar prices were down by 2.4 percent in November compared to October, giving back some of the gains from the previous two months. Meat prices, meanwhile, were 0.8 percent lower.

The next installment of the monthly FAO index, which will close the book on global food prices in 2024, is scheduled to be released on Jan. 3, 2025.

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