Global: Dairy products and vegetable oils increase the CPI of FAO, cereals continue to fall in price

Published Dec 11, 2024

Tridge summary

The FAO Food Price Index experienced a 0.5% increase in November 2024, reaching its highest level since April 2023, as reported. This rise was primarily due to higher prices for dairy products and vegetable oils, which compensated for lower prices in meat, cereals, and sugar. Compared to the previous year, the index was 5.7% higher, but 20.4% lower than its peak in March 2022. The average cereal price index in November was 2.7% lower than in October and 8% lower than in November 2023, largely due to increased supplies and improved conditions for the 2025 crop in major exporters. Meanwhile, global corn prices remained stable, with factors such as favorable weather in South America, weak demand from Ukraine, and seasonal pressure in the US being balanced by strong domestic demand in Brazil and Mexico.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The FAO Food Price Index (CPI) averaged 127.5 points in November 2024, which is 0.5% higher than the October level and reached the highest value since April 2023, ProAgro Group reports with reference to the organization's report. The increase was driven by higher prices for dairy products and vegetable oils, which slightly outweighed lower prices for meat, cereals and sugar. Compared to historical levels, November's CPI was 5.7% higher than a year ago, but remained 20.4% below its peak of 160.2 points reached in March 2022. In particular, the average FAO cereal price index was 111.4 points in November, which is 2.7% lower than in October and 8% below its value in November 2023. Global wheat prices fell on a monthly basis due to increased supplies from the current harvest in the Southern Hemisphere and improved conditions for the 2025 crop in some major Northern Hemisphere exporters. Weaker international demand also contributed to softening the price dynamics. World corn prices ...

Source: Agravery