Global food prices rise, driven by vegetable oils

Published Nov 8, 2024

Tridge summary

The Food and Agriculture Organization of the United Nations (FAO) has reported a 2% increase in its price index, which tracks international commodity prices, reaching a level not seen since April 2023. The rise is due to higher prices for vegetable oil, dairy, sugar, and cereals. Specifically, vegetable oil prices have increased due to anticipated reduced production in Southeast Asia, dairy prices are up due to high demand for cheese and butter against reduced milk production in Europe, sugar prices have risen due to potential production issues in Brazil, and cereal prices have increased due to difficult harvest conditions and strong demand. However, rice prices have decreased.

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

Original content

The price index calculated by the Food and Agriculture Organization of the United Nations (FAO), which tracks changes in international prices for a basket of commodities, rose 2% over one month, reaching a level not seen since April 2023. In October it had gained 5.5% over one year, but remained 20.5% below its peak in March 2022. The vegetable oil index in particular gained 7.3% from September to October. It had not reached such a level for two years. International palm oil quotations are on the rise due to expected reduced seasonal production in major producing countries in Southeast Asia. The same goes for the production prospects for sunflower and rapeseed. The dairy index rose by 2.5% in October compared to September, gaining in value by 21.4% over one year, driven by sustained demand for cheese and butter against a backdrop of reduced seasonal milk production in Europe. Sugar is at +2.6%, ahead of prospects for Brazilian production hampered by drought. As for cereals, it is ...

Source: TerreNet