Food market in Ecuador. Global food price index declines for third month in a row Economic development
World prices for basic food products continued to fall in November, with the exception of grain prices. This is evidenced by data published on Friday by the UN Food and Agriculture Organization (FAO).
The FAO Food Price Index, which tracks monthly changes in international prices for major food commodities, stood at 125.1 points in November, down 1.2 percent from October. Thus, the figure has been declining for the third month in a row. It is 2.1 percent below the level of November 2024 and 21.9 percent below the peak recorded in March 2022.
Cereal prices
The grain price index increased by 1.3 percent. Despite favorable global supply forecasts and good harvests in Argentina and Australia, global wheat prices rose 2.5 percent. This was facilitated by China’s interest in supplies from the United States, ongoing hostilities in the Black Sea region and the expected reduction in crops in Russia. Corn prices rose on strong demand for Brazilian supplies, while the rice price index fell on weak imports of Indian and aromatic rice varieties.
The vegetable oil price index fell 2.6 percent from October. Declines in the cost of palm, canola and sunflower oil outpaced moderate increases in soybean oil prices, supported by strong demand from the biofuels sector, especially in Brazil.
Meat Price Index
The meat price index decreased by 0.8 percent. Poultry meat prices have fallen due to abundant export supplies and increased competition, fueled by Brazil’s attempts to regain market position after the lifting of trade restrictions related to avian flu. Pork prices also fell, mainly due to large stocks in the European Union and lower demand in China following the introduction of import tariffs. Beef prices remained stable, while lamb prices rose.
Dairy
The dairy price index fell 3.1 percent, helped by falls in the cost of butter and whole milk powder. The trend reflects rising milk production and abundant export supplies in major producing regions.
The sugar price index fell 5.9 percent from October, supported by expectations of strong global supplies this season and strong production in Brazil, India and Thailand.
Final forecast year
FAO also presented updated final forecasts for the global grain market for 2025. Thanks to better-than-expected wheat harvests, especially in Argentina, global cereal production will top three billion tons for the first time, up 4.9 percent to 3.003 billion tons. Corn and rice production will also increase from last year, with the global rice harvest expected to increase 1.6 percent, supported by rising production in Bangladesh, Brazil, China, India and Indonesia.