World Food Commodity Prices Continue to Slide in November

World food commodity prices fell again in November, led by declines in all major categories except cereals, according to the latest Food Price Index released Friday by the Food and Agriculture Organization (FAO) of the United Nations. 

The broad index, which measures monthly changes in internationally traded food commodities, averaged 125.1 points, down 1.2% from October. It marked the third consecutive monthly decline and left food prices 2.1% below year-ago levels and almost 22% below their March 2022 peak reached after the start of the war in Ukraine. 

In contrast to the broader downturn, the cereal price index rose 1.3% in November, driven by higher wheat and corn prices. The increase came despite what FAO described as a comfortable global supply outlook and positive harvest expectations in Argentina and Australia. 

Global wheat prices climbed 2.5%, supported by several risk factors, including potential Chinese interest in US wheat, uncertainty linked to the ongoing conflict in the Black Sea region, and expectations of smaller planted acreage in Russia for the 2026 crop year. International corn prices also strengthened due to firm global demand, particularly for Brazilian supplies. 

Rice was the exception among major cereals, pressured by subdued import demand for Indica and fragrant varieties, a reversal from the elevated prices seen earlier this year due to export restrictions in Asia. 

On the other hand, the vegetable oil index dropped 2.6%, continuing its downward trend. Lower quotations for palm, rapeseed and sunflower oil outweighed a modest uptick in soybean oil. Soyoil prices rose on strong biodiesel demand, especially in Brazil, where production growth is helping offset lower demand in other markets. 

Palm oil prices weakened on increasing seasonal output in Southeast Asia, while rapeseed and sunflower oil markets faced downward pressure from growing export supplies and relatively soft demand. 

The meat index slipped 0.8% in November. Ample poultry supplies and intensified global competition weighed on prices, especially as Brazil works to reclaim market share following the lifting of avian influenza-related import restrictions. Pork prices also fell, pressured by abundant EU supply and weaker Chinese demand after new import duties. Beef values were generally stable, while sheep meat prices rose. 

Dairy prices 3.1%, driven by lower butter and whole milk powder prices amid rising milk output in major producing regions. The FAO sugar price index dropped 5.9%, reflecting expectations of strong global production, particularly in Brazil, India and Thailand.