The benchmark for world food commodity quotations rose to its highest level since April 2023 in November, increasing by 0.5% from October and 5.7% year-on-year, driven by surging international vegetable oil prices, the Food and Agriculture Organisation (FAO) of the United Nations reported Friday.
The FAO Food Price Index (FFPI), which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 127.5 points in November and was still 20.4% below its March 2022 peak.
The November FAO Vegetable Oil Price Index increased by 7.5% month-on-month and 32.0% from November last year. World soyoil prices rose on global import demand, while rapeseed and sunflower oil quotations increased as tightening global supply prospects affected their respective markets. Global palm oil prices climbed further amid concerns about lower-than-expected output due to excessive rainfall in Southeast Asia.
Meanwhile, news reports are emerging in Southeast Asia where the largest palm oil producer Indonesia is pushing for a higher-grade biofuel blend of B50 (50% palm oil-based biofuel and 50% fossil fuel) that is expected to be implemented in the near future. Indonesia’s transition from B35 to B40 took just about one and a half years. The mandate for B40 to start 1 January 2025, nearly 18 months after the B35 biodiesel order was implemented on 1 August 2023, according to Malaysian Palm Oil Board’s (MPOB) news posting.
During the month in review, Dairy Price Index was up 0.6% from October and 20.1% above its level a year ago. International quotations for milk powders, in particular whole milk powder, registered the largest increases, driven by a rebound in global demand and the seasonal decline in milk production in Western Europe, which offset rising seasonal milk production in Oceania. World butter prices increased for the fourteenth consecutive month, reaching a new record high due to strong internal and international demand amid tight inventories, particularly in Western Europe. Cheese prices also rose, reflecting limited availabilities to meet growing import demand for spot supplies.
FAO Food Price Index averaged 127.5 points in November 2024, its highest value since April 2023 up 0.6 points (0.5%) from October, and 6.9 points (5.7%) higher year-on-year but remained 20.4% below its peak of 160.2 points reached in March 2022.
Vegetable Oil Price Index averaged 164.1 points in November, rising 11.4 points (7.5%) month-on-month, and increasing 40.0 points (32.2%) year-on-year.
Dairy Price Index stood at 139.9 points in November, up 0.9 points (0.6%) from October and 23.4 points (20.1%) above its corresponding November level a year ago.
Cereal Price Index averaged 111.4 points in November, down 3.0 points (2.7%) from October and 9.6 points (8.0%) below its November 2023 value.
Sugar Price Index averaged 126.4 points in November, down 3.1 points (2.4%) from October, following two consecutive monthly increases, and declined 35.0 points (21.7%) year-on-year.
Meat Price Index1 averaged 118.1 points in November, was up 6.6 points (5.9%) year-on-year.
Meat Price Index2 averaged 118.1 points in November, down 0.9 points (0.8%) from the revised October value.
