Global food prices rose in October to an 18-month high with vegetable oils leading the increases in most food staples, United Nations data showed on Friday. The U.N. Food and Agriculture Organization (FAO) Food Price Index averaged 127.4 points in October 2024, up 2 percent from its revised September level and the highest since April 2023.
The overall index extended September’s gains when it reached its highest since July 2023 due to surging sugar prices.
The prices of all commodities on the index rose except meat, with vegetable oils recording the largest increase at 7.3 percent. Compared to historical levels, the index for global food prices in October was 5.5 percent higher than in October 2023 but remained 20.5 percent below its record high of 160.2 points reached in March 2022.
Palm oil prices propel index
Global food prices rose last month mainly due to a 7.3 percent surge in vegetable oil prices to a two-year high. FAO attributed this rise to higher quotations across palm, soy, sunflower, and rapeseed oils.
International palm oil prices increased for the fifth consecutive month in October, largely due to concerns over lower-than-expected outputs coinciding with prospective seasonal production declines in key producing countries in Southeast Asia. In addition, global sunflower and rapeseed oil prices continued to rise due to supply concerns.
Weather conditions impact global wheat supply
Cereal prices edged up 0.8 percent last month. Global wheat prices increased for the second consecutive month, mostly reflecting concerns over unfavorable weather conditions affecting winter crop sowing in several major northern hemisphere exporters. Additionally, the re-introduction of an unofficial price floor in the Russian Federation and rising tensions in the Black Sea region exerted upward pressure on prices.
Meanwhile, dairy prices rose nearly 2 percent, supported by cheese and butter, which both faced strong demand and limited available supply. International cheese prices registered the largest increase, reflecting the limited availability of supplies to meet import demand for spot supplies amid strong internal sales, especially in the European Union, where milk production fell seasonally.
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Brazil’s production outlook raises sugar prices
Overall meat prices edged down 0.3 percent. Poultry prices fell while beef rose due to increased international demand.
Finally, sugar prices rose 2.6 percent, marking a second consecutive monthly increase. Persisting concerns over the 2024-2025 production outlook in Brazil, following a prolonged period of dry weather conditions, pushed sugar prices up in October.
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