The international food price index ended September unchanged

By: Trademagazin Date: 2023. 10. 06. 14:49

The international food price index remained stable in September after lower prices for vegetable oils, dairy products and meat products were offset by higher prices for sugar and corn, the Food and Agriculture Organization of the United Nations (FAO) reported.

The FAO food price index – which tracks the price changes of the most important food commodities in international trade from month to month – in September was 10.7% below its value a year earlier and 24.0% lower compared to the peak of March last year.

The Cereals Price Index increased by 1.0% over the past month due to a 7.0% increase in the global market price of corn, which was caused by increased demand for Brazilian stocks and supply market disruptions. International wheat prices fell 1.6% on stable Russian stocks and good production prospects, while the FAO index, which covers all rice varieties, shrank 0.5% on weak import demand.

The vegetable oil price index fell 3.9% from August, as palm, sunflower, soybean and canola oil quotes were all down due to seasonally high output and export inventories.

The sugar price index shot up 9.8% in September, hitting a 13-year high, as concerns intensify over expected tight supplies for the season ahead. Preliminary forecasts suggest a drop in production in Thailand and India – two key producers – due to the El Niño phenomenon. At the moment, the harvest in Brazil is also taking place under ideal conditions, which has somewhat restrained the rise in prices.