The global food price index has declined to a nine-month low in October 2022 with higher world cereal prices averaging lower prices of other food commodities, as reported by the Food and Agriculture Organisation of the United Nations (FAO).
The FAO Food Price Index (FFPI) measures the monthly change in international prices of a basket of food commodities. It consists of the average of five commodity group price indices weighted by the average export shares of each of the groups over 2014-2016.
The report showed that the index of all food commodity groups except cereal was down month-on-month. The increase in the cereal index countered the downturn of vegetable oils, sugar, meat, dairy, and sugar.
World wheat prices rose by 3.2 percent, as the FAO Cereal Price Index averaged 152.3 points in October, up 4.4 points (3.0 percent) from September and 15.2 points (11.1 percent) above its value a year ago. International reference prices of all the major cereals were up month-on-month. This is a result of the Black Sea Grain Initiative, tight supplies in the USA, and uncertainty about the continuation of Ukraine’s exports amongst many others.
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According to the report, vegetable Oil Price Index averaged 150.1 points in October, down 2.4 points (1.6 percent) month-on-month, nearly 20 percent below October 2021. The continued decrease of the index was driven by world lower prices of palm, soy, and rapeseed oils, which more than offset higher sunflower seed oil quotations.
The dairy price index decreased by 1.7 percent, at 140.1 points in October.
Lower demand by China and other importing countries, together with the impact of the weaker Euro against the United States dollar, promoted the drop in world dairy prices.
The Meat Price Index averaged 118.4 points in October, down 1.6 points (1.4 percent) from September, marking the fourth consecutive monthly decline, with world prices of all meat types dropping. The international price of ovine meat fell on the back of currency movement and seasonal increase in supply.
The FAO Sugar Price Index averaged 109 points in October, down 0.7 points (0.6 percent) from September and 10.1 points (8.5 percent) from its value in the corresponding month last year. The drop in the global price of sugar was catalysed by improved production prospects in India and stronger import demand, particularly from Indonesia and China.
