The FAO report has arrived: prices are plummeting, grain is heading for a record low

In recent months, a striking turn of events has emerged in global food markets: while the prices of most staple foods are falling sharply, the grain market is heading towards a historic production record. According to the latest report from the FAO, for the third consecutive month in November, the food price index has declined, outlining an abundant global supply that could result in inventory levels not seen in decades. The situation is particularly exciting because prices and production data are moving in opposite directions: despite plummeting prices, the largest grain harvest ever recorded is being prepared. The FAO food price index fell to 125.1 points in November, a significant drop within a single month. Dairy products, meats, vegetable oils, and sugar all pulled the index down: for example, sugar prices fell to a level not seen since 2020. The dairy sector was driven by the abundant export supply from the EU and New Zealand, while the meat market was influenced by the ...