November Drop in Global Food Prices: FAO Report

November 2023 Food Prices Analysis

IRFAN DONAT

Global food prices have shown a noticeable decline as of November 2023. FAO Food Price Index has decreased by 1.2% on a monthly basis, marking the third consecutive decline. On an annual basis, a decrease of 2.1% has been observed.

Decline in Price Indices

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

Trends in Grain Prices and Market Dynamics

FAO Grain Price Index saw a monthly increase of 1.8% in November, but it remains 5.3% below the levels of the previous year. Overall, a comfortable supply situation and good harvest news from Argentina and Australia led to a 2.5% rise in global wheat prices. This is due to factors such as China's desire to purchase from the U.S. 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 associated with the drop in prices of palm and sunflower oils. The expected high production in Malaysia has contributed to lowering prices compared to competing oils.

Developments in Meat Prices

In November, the FAO Meat Price Index decreased by 0.8% on a monthly basis. However, compared to the same period last year, it has shown an increase of 4.9%. The decline in prices, particularly for pork and poultry, is attributed to weak global market demand and competition in Brazil's exports.

Trends in the Dairy Products Market

In November, the FAO Dairy Products Price Index fell by 3.1%. This decline has been supported by ample stocks in the European Union and New Zealand. While butter and milk powder prices decreased, cheese prices saw the least reduction due to strong demand.