"Decrease in Global Food Prices in November: FAO Report"

November 2023 Food Prices Analysis

IRFAN DONAT

Global food prices have shown a noticeable decline as of November 2023. The FAO Food Price Index dropped by 1.2% month-on-month, marking a decline for the third consecutive month. On an annual basis, there is a decrease of 2.1%.

Decline in Price Indices

This decline has been supported by decreases in the prices of dairy products, meat, sugar, and vegetable oils; however, the increase in the grain index has limited these declines.

Grain Prices and Market Dynamics

In November, the FAO Grain Price Index showed an increase of 1.8% month-on-month, yet it remains 5.3% below the levels of the previous year. Generally, a comfortable supply situation and good harvest news from Argentina and Australia led to a 2.5% rise in global wheat prices. This is attributed to factors such as China's willingness to purchase from the USA and the ongoing conflicts in the Black Sea region.

Changes in Vegetable Oil Prices

The FAO Vegetable Oil Price Index fell by 2.6% in November, reaching its lowest level in the last five months. This is related to the decline in the prices of palm and sunflower oils. The expected high production in Malaysia contributed to lowering prices compared to competing oils.

Developments in Meat Prices

In November, the FAO Meat Price Index declined by 0.8% month-on-month. However, compared to the level a year ago, it shows an increase of 4.9%. The decline in prices, particularly for pork and poultry, is attributed to weak demand in the global market and competition in Brazil's exports.

Trends in the Dairy Products Market

The FAO Dairy Price Index fell by 3.1% in November. This drop has been supported by the abundance of stocks in the European Union and New Zealand. Notably, while butter and skim milk powder prices declined, cheese prices exhibited the least decrease due to strong demand.