November Sees Rise in Vegetable Oil Prices in Global Market, While Wheat, Rice, and Sugar Prices Decline

The benchmark for world food commodity prices rose in November to its highest level since April 2023, increasing by 0.5 percent from October, driven by surging international vegetable oil quotations, the Food and Agriculture Organization of the United Nations has (FAO) reported. The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 127.5 points in November, up 5.7 percent from a year ago while still 20.4 percent below its March 2022 peak.

The FAO Vegetable Oil Price Index increased by 7.5 percent in November from October, marking its second large increase in two months and 32 percent higher than its year-earlier level. Global palm oil prices climbed further amid concerns about lower-than-expected output due to excessive rainfall in Southeast Asia. World soyoil prices rose on global import demand, while rapeseed and sunflower oil quotations increased as tightening global supply prospects affected their respective markets.

The FAO Dairy Price Index maintained its upward trajectory in November, increasing by 0.6 percent from October, driven by rebounding global import demand for whole milk powder. Butter prices reached a new record level amid strong demand and tight inventories in Western Europe, while cheese prices rose due to limited export availability.

The other sub-indexes posted declines in November. The FAO Cereal Price Index dropped by 2.7 percent, down 8.0 percent below a year earlier. Global wheat prices declined due to weaker international import demand and increased supplies from the ongoing harvests in the Southern Hemisphere. World maize prices remained stable as strong domestic demand in Brazil and Mexico’s demand for supplies from the United States of America were offset by favorable weather in South America, reduced demand for Ukrainian supplies and seasonal pressure from the ongoing U.S. harvest. The FAO All-Rice Price Index declined by 4.0 percent in November, driven by increased market competition, harvest pressures and currency fluctuations.

The FAO Sugar Price Index declined by 2.4 percent from October, impacted by the start of the crushing season in India and Thailand and eased concerns over next year’s sugarcane crop prospects in Brazil, where recent rains have improved soil moisture.