Rome: The benchmark of world food commodity prices saw a slight decline in September, driven primarily by decreases in the sugar and dairy price indices, as detailed in a recent report from the Food and Agriculture Organisation of the United Nations (FAO).
According to Emirates News Agency, the FAO Food Price Index, which monitors monthly changes in the prices of globally-traded food commodities, averaged 128.8 points in September, a slight decrease from the revised August level of 129.7 points. Despite the monthly decline, the September index reflects a 3.4% increase compared to the same period last year.
The FAO Cereal Price Index experienced a 0.6% dip from August. International wheat prices fell for the third consecutive month, influenced by subdued global demand and confirmation of abundant harvests in major producing nations. Similarly, world maize prices dropped due to forecasts of plentiful supplies and Argentina’s temporary suspension of grain export taxes. The FAO All Rice Price Index decreased by 0.5%, attributed to reduced purchase orders from buyers in the Philippines and Africa.
The FAO Vegetable Oil Price Index decreased by 0.7% in September. This decline was due to lower palm and soybean oil quotations, supported by robust palm oil stocks in Malaysia and increased exportable soybean oil supplies from Argentina, which more than compensated for the rises in sunflower and rapeseed oil prices.
Conversely, the FAO Meat Price Index rose by 0.7% from its revised August level, marking a new record high and showing a 6.6% increase from a year earlier. This rise was driven by higher global prices for bovine and ovine meats, while pig and poultry meat prices remained relatively stable. Bovine meat prices reached unprecedented levels, bolstered by strong demand in the United States, where limited domestic supplies and favorable pricing continued to encourage imports.
The FAO Dairy Price Index fell by 2.6% in September. World butter prices dropped by 7.0% due to declining demand for ice cream in the Northern Hemisphere and improved production prospects in Oceania. Milk powder prices decreased amid softer demand from key importers and intensified export competition, while cheese prices showed only a slight decline.
The FAO Sugar Price Index saw a 4.1% decrease from August, reaching its lowest point since March 2021. The decline was attributed to higher-than-expected sugar production in Brazil and favorable harvest prospects in India and Thailand, following ample monsoon rains and expanded plantings.