FAO reports world food prices down marginally in September
FAO reported global food prices down marginally in September (adjusted for inflation). Year on year, the Food Price Index (FPI) was reported down 12 percent YOY on weaker prices across most categories.
The cereals index was up modestly in September—the first time in 11 months—on a rebound in corn prices and sorghum, only partly offset by falling wheat prices. Though rice stocks are low ahead of the new-crop harvests in Asia, pricing dipped half a point MOM on a weaker export demand.
Vegetable oils depreciated in September, the tenth monthly drop in the last 12 months. Canola oil supply has recovered, helping pressure soybean oil.
The sugar subindex rebounded in September, reaching its highest level in 12 years. Per FAO, a weaker Brazilian real and favorable South American weather are moderating price gains.
Dairy prices were down for the ninth month on weak spot and short-term export demand. Meat prices fell for a third month with only beef prices rebounding, with demand of North American beef overcoming good availability from South American exporters.
The full version of this commentary appeared on our IQ platform Oct. 6, 2023. Further information about FAO’s Food Price Index is available to IQ subscribers. Learn more about becoming a subscriber.
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