The United Nations’ global food price index surged in November to its highest level since April 2023, marking the steepest increase in 19 months. The rise was fueled by soaring vegetable oil prices, according to recently published data.
The index, compiled by the UN’s Food and Agriculture Organization (FAO), tracks the most internationally traded food commodities. It climbed to 127.5 points in November, up from 126.9 points in October, reflecting a 5.7% year-on-year increase, as reported by Reuters.
Vegetable oil prices saw a significant monthly rise of 7.5% and an annual increase of 32%, primarily due to concerns over reduced palm oil production caused by heavy rains in Southeast Asia. Prices for soybean oil also spiked amid heightened global import demand, while canola and sunflower oil prices increased as well.
However, prices for other food commodities declined. Grain prices dropped by 2.7% compared to October, led by reductions in wheat and rice prices. Sugar prices also fell by 2.4% as harvests began in India and Thailand, and fears over Brazil’s crop eased.
In a separate report, FAO revised its 2024 global cereal production forecast downward from 2.848 billion metric tons to 2.841 billion metric tons, representing a 0.6% decrease from the previous year. Despite this adjustment, it would still be the second-largest production in history.
Global cereal consumption is projected to grow by 0.6% to 2.859 billion metric tons during the 2024–2025 season, driven by rising demand. Consequently, the global cereal stock-to-use ratio is expected to decline to 30.1% by the end of the 2025 season, down from 30.8% previously forecast. Nevertheless, the FAO stated that this ratio still indicates “comfortable global supply levels.”
