According to the FAO, the food price index in November stood at 125.1 points, which is 1.2 percent lower than the figure recorded in October. Thus, the decline has been ongoing for three months.
Changes in prices by main categories
The price index for grains increased by 1.3 percent. This occurred against the backdrop of positive forecasts for global supplies and good harvests in Argentina and Australia. However, wheat prices rose by 2.5 percent due to increased interest from China in American supplies, ongoing conflicts in the Black Sea, and the expected reduction in sown areas in Russia. At the same time, corn prices rose due to steady demand for Brazilian supplies, while the rice price index showed a decline due to weak imports of Indian and aromatic rice.
The price index for vegetable oils decreased by 2.6 percent compared to the previous month.
As for meat, the price index fell by 0.8 percent. The decline in poultry meat prices is attributed to increased export volumes and intensified competition. There is also a drop in pork prices, mainly related to high stocks in the European Union and decreased demand in China following the introduction of new import tariffs. Beef prices remained stable, while lamb prices increased.
The price index for dairy products also decreased, by 3.1 percent. This decline is due to falling prices for butter and whole dry milk, which corresponds to increased milk production and higher exports in key producing regions.
The price index for sugar fell by 5.9 percent compared to October, which is linked to forecasts of significant global supplies and high production levels in Brazil, India, and Thailand.
End-of-Year Forecast
The FAO also updated its forecasts for the global grain market for 2025. It is expected that thanks to higher-than-anticipated wheat harvests, particularly in Argentina, the total grain production will exceed 3 billion tons for the first time, increasing by 4.9 percent to reach 3.003 billion tons. An increase in corn and rice production is also anticipated compared to the previous year, with the global rice harvest likely to rise by 1.6 percent due to improved performance in Bangladesh, Brazil, China, India, and Indonesia.
