Decrease in Global Food Prices in November 2023!

Global Food Prices Decreased in November 2023

According to the FAO Food Price Index data, global food prices registered a decrease of 1.2% in November. This marks the third consecutive monthly decline; however, on an annual basis, there was a 2.03% decrease.

Price Adjustments and Sectoral Developments

Declines in the prices of dairy products, meat, sugar, and vegetable oils 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.

Impact on Wheat and Corn Markets

In November, wheat prices rose by 2.5%, driven by concerns over increased potential for China to source wheat from the United States and ongoing conflicts in the Black Sea region. International corn prices increased due to strong demand from Brazil and disruptions in agricultural activities caused by rains in Argentina.

Decline in Vegetable Oil Prices

The FAO Vegetable Oil Price Index decreased by 2.6% in November, reaching the lowest level in five months. This decline is attributed to the drop in prices of palm oil and sunflower oil. High production in Malaysia supports the decrease in palm oil prices, while positive production expectations 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, while continuing to show an annual increase of 4.9%. The decline in pork and poultry meat prices persisted in relation to the decrease in Brazil's export values.

Continued Decline in Dairy Prices

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

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, the global decline in food prices reflects various dynamics of the markets and supply-demand relationships, particularly shaped by production levels and demand changes in major exporting countries.