LONDON, U.K. (Reuters) — The United Nations’ world food price index rose in November to its highest level since April 2023, recording its biggest gain in 19 months on the back of surging vegetable oil prices.
The price index, compiled by the Food and Agriculture Organization to track the most globally traded food commodities, increased to 127.5 points last month from a revised 126.9 points in October, the highest level in 19 months and up 5.7 per cent from a year ago.
The vegetable oil index jumped 7.5 per cent above levels seen a month ago and 32 per cent above those seen a year earlier, driven by concerns over lower than expected palm oil output due to excessive rainfall in Southeast Asia.
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Soyoil prices rose on stronger global import demand, while rapeseed and sunflower oil also increased.
Other food price indexes declined.
Cereal prices dropped 2.7 per cent from October thanks to weaker wheat and rice prices, while sugar fell 2.4 per cent from October as India and Thailand began crushing and concerns over Brazil’s crop prospects eased.
In a separate report, the FAO trimmed its forecast for global cereal production in 2024 from 2.848 billion tonnes to 2.841 billion, a 0.6 per cent decline from last year but still the second largest output on record.
World cereal utilization, meanwhile, is set to increase 0.6 per cent to 2.859 billion tonnes in 2024-25, thanks to growing consumption.
As a result, the FAO expects the cereal stocks-to-use ratio to fall to 30.1 per cent at the close of the 2025 season from 30.8 per cent previously, but still indicating a “comfortable level of global supply.”
