World food prices surged in October, hitting an 18-month high and marking the highest level since April 2023.
The increase was driven largely by a 7.3% spike in vegetable oil prices, with gains seen across most staple food categories.
According to the United Nations Food and Agriculture Organization (FAO), the FAO Food Price Index (FFPI) rose to 127.4 points last month, a 2% increase from the revised 124.9 points in September.
‘The FAO Food Price Index (FFPI) averaged 127.4 points in October 2024, up 2% from its revised September level and the highest since April 2023,’ the report stated.
Compared to the same time last year, the FAO Food Price Index (FFPI) in October was 5.5% higher. However, it remains 20.5% below its peak of 160.2 points, which was reached in March 2022
The FAO’s Food Price Index, which tracks changes in international prices of globally traded food commodities, rose to 127.4 points, up from a revised 124.9 points in September.
This marks a 5.5% increase from October 2023, though the index remains 20.5% lower than the record high reached in March 2022 following Russia’s invasion of Ukraine.
Vegetable oil prices
- Vegetable oil prices saw the sharpest increase in October, rising over 7% compared to the previous month.
- According to the FAO, this increase was largely due to concerns about disruptions in some oil production coupled with high demand, which continue to drive up prices in the vegetable oil sector.
“The rise was driven by higher quotations across palm, soy, sunflower and rapeseed oils. International palm oil prices increased for the fifth consecutive month in October, largely fuelled by concerns over lower-than-expected outputs coinciding with prospective seasonal production declines in key producing countries in Southeast Asia,” the report stated.
Sugar and cereals
- Sugar prices increased by 2.6% in October, sustaining a moderate gain amid production concerns in Brazil, one of the world’s largest sugar producers.
- The report attributes this rise to uncertainty surrounding Brazil’s 2024/25 sugar production and higher international crude oil prices, which stimulate a greater use of sugarcane for ethanol production in Brazil.
“Persisting concerns over the 2024/25 production outlook in Brazil, following a prolonged period of dry weather conditions, pushed sugar prices up in October. Additionally, higher international crude oil prices, which stimulate a greater use of sugarcane for ethanol production in Brazil, further contributed to the increase in prices,” the report stated
- Cereal prices edged up by 0.8% from September, with wheat prices impacted by planting conditions in the Northern Hemisphere and an unofficial export price floor introduced by Russia. Maize prices also saw a slight rise, the report showed.
Dairy products rise, meat prices decline
- Dairy prices rose nearly 2% in October, with strong demand for cheese and butter amid limited supplies.
- In contrast, meat prices saw a slight decline of 0.3%, led by reductions in pork and poultry prices. However, beef prices continued to rise, driven by sustained international demand.
“International pig meat prices fell the most, reflecting increased slaughter in Western Europe amid weak domestic and foreign demand. World poultry meat prices fell slightly, pressured by higher export supplies from major global producers,” the report stated.