The world food price index turns downward… Cut down on grains, meat, and dairy products

The World Food Price Index, which had been on the rise for three consecutive months, turned downward last month.

The Ministry of Agriculture, Food and Rural Affairs announced on the 7th that the October World Food Price Index announced by the Food and Agriculture Organization of the United Nations (FAO) was 133.9, down 1.2% from the previous month.

The index is a number compared with the average price from 2014 to 2016 set to 100.

Last month's index was 16.4% lower than in March 2022 (160.2), which peaked due to Russia's invasion of Ukraine, but 5.9% higher than last October.

Price indices for grains, meat, and dairy products fell.

The grain price index was 116.8, down 4.5% from the previous month. Wheat prices, which had risen for four consecutive months, turned to decline as international demand was sluggish and production prospects improved, especially in Argentina. International corn prices and barley and sorghum prices also fell.

On the other hand, rice prices rose 1.6% due to harvest delays in some exporting countries and bad weather.

The meat price index was 125.5, down 1.2%. Prices of pork, lamb, and beef fell, while poultry meat prices remained flat.

The dairy price index fell 1.1% to 117.8. The fall in international butter and cheese prices had a significant impact.

On the other hand, the price of skim milk powder rose significantly as import demand continued and supply was limited.

In addition, oils and fats rose slightly, and the sugar price index rose significantly.

The oil price index rose 0.3% to 199.2. Soybean oil prices rose to their highest level since the end of 2022, driven by increased demand from the biofuels sector and seasonal supply declines in South America. Sunflower oil prices also rebounded.

However, rapeseed oil prices fell due to seasonal supply increases and sluggish demand for biodiesel raw materials.

The sugar price index was 121.3, the highest level since December 2024. It is a 6.6% increase from the previous month and a 28.8% increase from a year ago.

The main cause of the price increase was the disruption of harvesting and pressing operations due to rain in the south-central region, Brazil's main sugarcane production area.