From the U.N.'s Food and Agriculture Organization, November 7:
» The FAO Food Price Index* (FFPI) averaged
172.7 points in October 2019, up 1.7 percent (3 points) from September
and 6.0 percent higher than in the corresponding period last year. The
increase in October marked the first significant month-on-month rise in
the value of the Index since May 2019, as surges in the prices of sugar,
cereals and, to a lesser extent, meat and vegetable oils, more than
offset a small decline in the value of the dairy sub-index.
» The FAO Cereal Price Index averaged 164.0
points in October, up by 4.2 percent (nearly 7 points) from September
but still 1.0 percent below its October 2018 level. International wheat
prices moved up sharply in October largely on robust trade activities
and lower crop prospects in Argentina and Australia. Among major coarse
grains, maize export prices also surged in October from very low levels
in September, reflecting not only reduced crops in the United States and
worries over planting conditions in Argentina, but also a pick-up in
export sales. By contrast, FAO's rice price index subsided in October,
driven by declines in fragrant rice quotations prompted by low demand
and prospects of an abundant basmati harvest.
» The FAO Vegetable Oil Price Index averaged
136.4 points in October, up 0.5 percent (or 0.7 points) from the
previous month and marking the highest level since September 2018. The
small month-on-month increase mainly reflects higher palm oil price
quotations, which more than offset lower values for sunflower and
rapeseed oils. International palm oil prices rose for the third
consecutive month, fuelled by firm global import demand and expectations
of an output slowdown in leading producing countries, as well as news
of higher biodiesel mandates in Indonesia next year. By contrast,
sunflower oil price quotations fell on active farmer selling in the wake
of bumper sunflowerseed harvests in the Black Sea region, while higher
than expected rapeseed crushing in the EU weighed on rapeseed oil
prices.
» The FAO Dairy Price Index averaged almost
192 points in October, down 0.7 percent (1.4 points) from the previous
month, representing the second consecutive month of decline but still
5.6 percent above its level in the corresponding month last year. The
October decline was the result of notably lower quotations for cheese,
more than offsetting increases in those for Skim Milk Powder (SMP) and
Whole Milk Powder (WMP). Increased export availabilities in New Zealand
were the principal factor behind the latest decline in cheese price
quotations. By contrast, strong import demand, especially from Asia for
short-term deliveries, underpinned the price increases of SMP and WMP.
After four months of continuous decline, butter prices began to
stabilize, reflecting renewed import interests.
» The FAO Meat Price Index* averaged 182.7
points in October, up 0.9 percent (1.7 points) from September,
representing the ninth consecutive monthly increase. International price
quotations for bovine and ovine meats continued to rise, with buoyant
import demand, especially from China, providing support. Quotations for
pig meat also increased, albeit moderately, reflecting continued import
demand in Asia despite seasonally increasing supplies from Europe and
higher export availabilities in Brazil. Prices of poultry meat fell
under downward pressure due to increased export availabilities in main
producing regions.
