FAO: World food prices hit highest since July 2011

November 4, Minsk. World food prices rose to a new peak, exceeding the level of July 2011. This is stated in the message of the Food and Agriculture Organization of the United Nations (FAO), published on its website.

In October, the average value of the FAO Food Price Index, which monitors monthly fluctuations in world prices for the most traded food products, was 133.2 points, up 3% compared to its September level. Thus, the growth of this index continues for the third month in a row.

Compared to the previous month, the FAO Cereal Price Index rose 3.2% in October. At the same time, due to the deterioration of crop prospects in major exporting countries, including Canada, Russia and the United States , and reduced supply in global markets, wheat prices jumped by 5%.

The FAO Vegetable Oil Price Index rose 9.6% in October, reaching its highest level ever recorded. This growth was driven by rising prices for palm, soybean, sunflower and rapeseed oils. It is noted that the increase in palm oil prices is due to concerns about low production in Malaysia due to the ongoing shortage of migrant workers.

The FAO Dairy Price Index is up 2.6 points from September. This was due to increased global demand for butter, skimmed milk powder and whole milk powder .

The FAO Meat Price Index averaged down 0.7% from the revised September reading. Thus, the decline in prices for this type of product has been going on for the third month.

The average value of the FAO Sugar Price Index fell for the first time in six months and was 1.8% below its September level. This decline was mainly driven by limited import demand in global markets and a projected increase in exports from India and Thailand.

The FAO Price Index is the result of tracking fluctuations in world prices for the most popular food commodities. The index is published monthly.