FAO: Global food price index fell in October despite cereal price ‎increase

The Food Price Index of the Food and Agriculture Organization of the United Nations (FAO) fell slightly in October, the seventh consecutive monthly decline, down by 14.9 percent from an all-time high recorded in March.

According to “Reuters”, the FAO said today, Friday, that its index, which tracks the prices of the most traded food commodities in the world, averaged 135.9 points last month, compared to a revised level of 136 points in September.

Previously, the September figure was 136.3 points.

The index fell from a record high of 159.7 in March, but remained two percent higher than its level a year ago.

While prices in general witnessed a decline, the cereal index rose 3 percent, with wheat rising 3.2 percent, mainly reflecting the uncertainty surrounding exports from Ukraine and a downward revision of supplies from the United States. International rice prices rose by one percent

In contrast, the FAO Vegetable Oil Price Index declined 1.6 percent in October, down nearly 20 percent from its level a year ago.

The prices of dairy products fell 1.7 percent, meat 1.4 percent, and sugar 0.6 percent

In separate estimates of cereal supply and demand, FAO lowered its forecast for world cereal production in 2022 to 2.764 billion tons from 2.768 billion previously.

This is 1.8 percent lower than production estimates in 2021.