Global Food Prices Decrease in November 2023!

Global Food Prices Decreased in November 2023

Global food prices recorded a decrease of 1.2% in November, according to FAO Food Price Index data. This marks the third consecutive monthly decline, while on an annual basis, there was a decline of 2.03%.

Price Adjustments and Sector Developments

Decreases in dairy products, meat, sugar, and vegetable oil prices offset the increase in the grain index. The FAO Grain Price Index increased by 1.8% in November but remained 5.3% below the levels of the previous year.

Impacts on Wheat and Corn Markets

In November, wheat prices increased by 2.5%, driven by concerns over China's potential to source wheat from the U.S. and escalating tensions in the Black Sea region. International corn prices, on the other hand, rose due to strong demand from Brazil and disruptions to agricultural activities caused by rain in Argentina.

Decline in Vegetable Oil Prices

The FAO Vegetable Oil Price Index fell by 2.6% in November, reaching its lowest level in five months. This decline is attributed to the decrease in palm oil and sunflower oil prices. High production in Malaysia has supported the drop in palm oil prices, while positive production expectations have led to a decline in canola oil prices.

Notable Developments in Meat Prices

The FAO Meat Price Index decreased by 0.8% on a monthly basis but continued to trend upward with an annual increase of 4.9%. The decline in pork and poultry prices has continued in connection with the decrease in Brazil's export values.

Ongoing Decline in Dairy Products

The FAO Dairy Products Price Index dropped by 3.1% in November, marking the fifth consecutive monthly decline. Abundant stocks in Europe and New Zealand contributed to the decrease in dairy product prices.

Current Situation of Rice Prices

The FAO All Rice Price Index fell by 1.5% due to crop harvests in the northern hemisphere and weak import demand.

In summary, this decline in global food prices reflects various market dynamics and supply-demand relationships, particularly shaped by production levels and demand changes in major exporting countries.