Global food prices decline for third consecutive month: FAO

The Food and Agriculture Organization (FAO) reported that global food prices fell for the third consecutive month in November, driven by declines across major commodity categories except grains.

FAO Food Price Index — which tracks a basket of globally traded food commodities — averaged 125.1 points in November, down from 126.6 points in October, marking its lowest level since January.

The grains prices rose 1.3% in November, despite generally positive global supply expectations and reports of abundant harvests in Argentina and Australia. Global wheat prices increased 2.5%, and maize prices strengthened amid strong demand for Brazilian supplies.

Meanwhile, the rice prices declined, and the vegetable oils and meat prices were down 2.6% and 0.8%, respectively.

The dairy prices dropped 3.1% in November due to lower prices for butter and whole milk powder, reflecting higher milk production and plentiful export supplies in major producing regions. Sugar prices fell 5.9%, pressured by expectations of ample global supply this season and strong production trends in Brazil, India, and Thailand.

The FAO also released its updated outlook for global grain markets, forecasting global grain production to exceed 3 billion tons for the first time ever. Global rice output is expected to grow 1.6%, led by Bangladesh, Brazil, China, India, and Indonesia.