FAO: International food prices stagnated in October

With this, the October value of the FAO food price index – which tracks the monthly price changes of the most important food raw materials in international trade – was 10.9% below the level of a year earlier.

The cereal price index decreased by 1.0% in one month. Rice prices on international markets fell by 2.0% due to sluggish import demand, while wheat prices fell by 1.9% due to strong supply from the United States of America and intense competition among exporters. On the other hand, quotations for grain crops – led by corn – increased somewhat, partly due to low Argentine stocks.

The vegetable oil price index has shrunk 0.7% since September, after lower palm oil prices due to seasonally high output and depressed demand more than offset gains in soybean, sunflower and canola oils. The price of soybean oil increased mainly due to higher demand from biodiesel producers.

Although the price index of sugar decreased by 2.2%, it still exceeded its value a year ago by 46.6%. The correction in October was due to the rapid pace of Brazilian production, but the possibly shrinking global output limited the fall in the season ahead.