Rome: World food commodity prices experienced a decline in November, driven by lower international quotations for all major staple foods, with the exception of cereals. This information comes from the benchmark measure released by the Food and Agriculture Organisation of the United Nations (FAO).
According to Emirates News Agency, the FAO Food Price Index, which tracks monthly changes in international prices of a basket of globally-traded food commodities, averaged 125.1 points in November. This marks a 1.2% decrease from its revised October level. The index has now fallen for three consecutive months, standing 2.1% below its November 2024 level and 21.9% lower than its peak in March 2022.
The FAO Cereal Price Index bucked the overall trend by increasing 1.3% during November. Despite a generally comfortable global supply outlook and reports of good harvests in Argentina and Australia, global wheat prices rose by 2.5%, influenced by potential Chinese interest in U.S. supplies and expectations of reduced plantings for the 2026 harvest in the Russian Federation.
International maize prices also saw an uptick, supported by strong demand for Brazilian supplies. Conversely, the FAO All Rice Price Index declined, reflecting subdued import demand for Indica and fragrant rice varieties.
The FAO Vegetable Oil Price Index dropped by 2.6% from October. This decrease was led by declines in palm, rapeseed, and sunflower oil quotations, which offset a modest increase in soyoil prices driven by strong demand from the biodiesel sector, particularly in Brazil.
Meanwhile, the FAO Meat Price Index edged down 0.8% from its revised October level. This decline was due to global poultry meat prices decreasing, as abundant exportable supplies and heightened global competition emerged, partly due to Brazil's efforts to regain market share following the lifting of avian influenza-related trade bans by key importers.
The FAO Dairy Price Index experienced a 3.1% decrease in November, primarily due to lower quotations for butter and whole milk powder. These declines were attributed to rising milk production and abundant export supplies in major producing regions.
Lastly, the FAO Sugar Price Index fell by 5.9% from October, driven by expectations of ample global supplies in the current season and strong production trends in countries such as Brazil, India, and Thailand.