Global Food Prices Decline 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 has decreased by 1.2% month-over-month, marking a decline for the third consecutive time. On an annual basis, there has been 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

The FAO Grain Price Index increased by 1.8% in November, yet it remains 5.3% below the levels of the previous year. Overall, a comfortable supply situation and good harvest news from Argentina and Australia have led to a 2.5% rise in global wheat prices. This is due to factors such as China wanting to make purchases from the United States and the ongoing conflicts in the Black Sea region.

Changes in Vegetable Oil Prices

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

Developments in Meat Prices

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

Trends in the Dairy Products Market

The FAO Dairy Products Price Index declined by 3.1% in November. This drop has been supported by abundant stocks in the European Union and New Zealand. While prices of butter and milk powder have decreased, cheese prices have shown the least drop due to strong demand.