Shibh Aljazeera Net | Economy
Global food prices rose in October to their highest level in 18 months, with increases across all categories except meat, led by a 7% rise in vegetable oils compared to September amid concerns about palm oil production.
According to data from the United Nations Food and Agriculture Organization (FAO), the global food price index increased to 127.4 points in October, up 2% from 124.9 points in September and representing a 5.5% rise from the previous year, marking the highest level since April 2023.
Ongoing concerns about production forecasts for 2024 and 2025 in Brazil contributed to a 2.6% rise in sugar prices in October. Dairy prices increased by about 2%, driven by strong demand and limited supplies for cheese and butter, while meat prices fell by 0.3%, and cereal prices rose by 0.8%.
Northern Hemisphere Lifts Grain Prices
Global wheat prices increased for the second consecutive month, reflecting concerns over unfavorable weather conditions impacting winter crop planting in major exporting regions across the Northern Hemisphere, including the EU, Russia, and the United States.
Additionally, the reintroduction of an unofficial minimum price in Russia and escalating tensions in the Black Sea region placed further upward pressure on prices.
Global corn prices continued their upward trend in October, driven by strong domestic demand in Brazil and transportation challenges in parts of the country due to low river levels.
Dry conditions affecting agriculture in Argentina and ongoing demand for Ukrainian corn also contributed to the increase. Among other coarse grains, global barley prices rose, while sorghum prices declined.
The FAO rice price index dropped by 5.6%, reflecting a decrease in Indica rice prices due to expected increased competition among exporters following India’s removal of restrictions on non-broken rice exports.