FAO Food Price Index continues to drop, but at a slower pace

» The FAO Food Price Index* (FFPI) averaged 120.6 points in October 2023, down 0.7 points (0.5 percent) from September, continuing the downward trend and standing 14.8 points (10.9 percent) below its corresponding value a year ago. The slight drop in October reflects declines in the price indices for sugar, cereals, vegetable oils and meat, while the index for dairy products rebounded.

» The FAO Cereal Price Index averaged 125.0 points in October, down 1.3 points (1.0 percent) from September and as much as 27.3 points (17.9 percent) from its value a year ago. International wheat prices fell by 1.9 percent in October, reflecting generally higher-than-earlier-anticipated supplies in the United States of America and strong competition among exporters. By contrast, international prices of coarse grains firmed marginally, increasing by 0.6 percent month-on-month. Thinning maize supplies in Argentina placed upward pressure on world maize prices, but this was capped by higher seasonal supplies in the United States of America, where the harvest progressed, and a strong export competition from Brazil. Among other coarse grains, world sorghum prices rose in October, while barley prices fell. International rice prices dropped by 2.0 percent month-on-month in October, weighed by generally passive global import demand.

» The FAO Vegetable Oil Price Index averaged 120.0 points in October, down 0.9 points (0.7 percent) from September, marking the third successive monthly decline and standing 31.3 points (20.7 percent) below its value one year ago. The marginal fall in the price index chiefly reflected lower world palm oil prices, more than offsetting higher prices of soy, sunflower and rapeseed oils. International palm oil prices continued to drop in October, mainly due to seasonally higher outputs in leading producing countries as well as protracted subdued global import demand. By contrast, world soyoil prices rebounded after declining for two months in a row, underpinned by robust demand from the biodiesel sector, particularly in the United States of America. In the meantime, international sunflower oil quotations rose slightly on firm global import purchases, while rapeseed oil also increased moderately on reduced crop prospects in Canada.

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