According to the recent FAO report, global food prices largely remained stable. The stability in food prices coincides with ongoing concerns about global food security and the impact of climate change.
One of the key factors in September was the favorable harvest in many parts of the world. There have been abundant crop yields in major food-producing regions, helping to keep price increases in check. Additionally, global trade in agricultural products has functioned well, according to the FAO, ensuring sufficient supply is available on the markets.
Nevertheless, some concerns remain. Food prices are still significantly higher than a year ago, increasing pressure on global food security. Moreover, ongoing uncertainties regarding the climate and geopolitical tensions may influence food prices in the future.
The FAO index measures prices of various food commodities, including grains, oils, dairy products, meat, and sugar. In September there were some fluctuations in prices of individual products. For example, there were slight increases in grain and oil prices, while prices of dairy products and meat remained stable. However, sugar prices declined.
The FAO dairy price index fell by 2.3% in September. This marked the ninth consecutive decline, which the FAO attributes to weak global import demand and well-stocked warehouses in the major producing countries. A relatively weak euro compared to the US dollar also weighed on international milk prices.
The FAO meat price index declined by 1.0%, with a combination of weak import demand and abundant global export supply putting downward pressure on prices for pork, poultry, and sheep meat. On the other hand, international beef prices recovered thanks to strong import demand for lean beef, especially in the US, according to the FAO's monthly report.