The United Nations’ Food and Agriculture Organization’s Food Price Index fell 1.2 percent to 125.1 points in November, marking a third consecutive monthly decline and a new low level since January.
Sugar prices tumbled 5.9 percent to the lowest level since December 2020, amid expectations of ample global sugar supplies in the current season. Sugar production remained strong in Brazil and India. Dairy prices dropped 3.1 percent to September 2024 lows with declines recorded across all major dairy commodities. Prices for vegetable oils went down 2.6 percent as lower prices in other categories more than offset a slight increase in the price of soy oil.
Also, meat prices dropped 0.8 percent, continuing to be driven lower by pig and poultry prices. On the other hand, cereal costs went up 1.8 percent, driven by a 2.5 percent increase in wheat bolstered by potential Chinese interest in supplies from the U.S. and reduced Russian plantings.
-NAFB