The international food price index ended September unchanged

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.