- The United Nations food agency dropped in October to its lowest point in over two years.
- Since March 2021, the reading in October was the lowest.
- October saw a 1.9% drop in international wheat prices as a result of stronger exporter competition.
Falling prices for meat, sugar, cereals, vegetable oils, and other food items caused the world price index of the United Nations food agency to drop in October to its lowest point in over two years.
In October, the Food and Agriculture Organization’s price index, which monitors the most widely traded food commodities, averaged 120.6 points, down from 121.3 in September, the organization said in a report on Friday. Since March 2021, the reading in October was the lowest. Less than 1.3 points from September, the FAO Cereal Price Index averaged 125.0 points.
World Food Price
October saw a 1.9% drop in international wheat prices as a result of stronger exporter competition and US supplies that were higher than anticipated.
The world milk powder price increased the most due to spikes in import demand, especially from Northeast Asia, while dairy prices increased by 2.4 points to 111.3 points.
The FAO increased its projection for global cereal production by 0.9% to 2.819 billion metric tons in 2024. The northern hemisphere is planting winter wheat, though limited area growth is anticipated because of lower crop prices.
Wheat acreage is predicted to decrease as a result of the war with Russia in Ukraine because of limited field access, low farm-gate prices, and unfavorable weather. In the southern hemisphere, the 2024 coarse grain crops are currently being sown.
