The vegetable oil index jumped 7.5% above levels seen a month ago on concerns of lower-than-expected palm oil production.
LONDON – The United Nations’ world food price index rose in November to its highest level since April 2023, recording the biggest gain in 19 months due to rising vegetable oil prices, data showed on Friday. walked.
The price index, compiled by the United Nations Food and Agriculture Organization (FAO) to track the most traded food commodities globally, rose to 127.5 points last month from a revised 126.9 points in October, the highest level in 19 months and is more than 5.7%. year ago.
The vegetable oil index jumped 7.5% above levels seen a month ago and 32% above levels seen a year ago, driven by concerns that palm oil production would be lower than expected due to excessive rainfall in Southeast Asia.
Soy oil prices rose on strong global import demand, while rapeseed and sunflower oils also rose.
Other food price indices declined.
Grain prices fell 2.7% in October on weak wheat and rice prices, while sugar fell 2.4% in October as crushing restarts in India and Thailand eased concerns over Brazil’s crop prospects.
In a separate report, FAO cut its forecast for global grain production in 2024 to 2.841 billion from 2.848 billion metric tons, down 0.6% from the previous year but still the second-highest production on record.
Meanwhile, world grain use will increase by 0.6% to 2.859 billion tonnes in 2024/25 due to rising consumption.
As a result, FAO expects the grain stocks-to-use ratio to fall to 30.1% at the end of the 2025 season from 30.8% previously, but still indicating “comfortable levels of global supply”.
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