World food price index fell for sixth consecutive month in September: FAO

Driven by a sharp fall in the international prices of vegetable oils and moderate decreases in those of poultry and dairy products, the Food and Agriculture Organization (FAO) on Friday said its world price index fell for the sixth month in a row in September.

FAO’s food price index (FFPI), which tracks the most globally traded food commodities, averaged 136.3 points in September versus a revised 137.9 for August. The August figure was previously put at 138.0.

The index has fallen from a record of 159.7 in March. Despite the new decline, the FFPI remained 5.5 per cent above its value in the corresponding month in 2021.

Meanwhile, FAO’s cereal price index rose 1.5 per cent month-on-month in September, with wheat prices climbing 2.2 per cent.

The FAO All Rice Price Index rose by 2.2 per cent last month. The agency said Indica rice prices spearheaded this increase, growing in response to export policy changes in India.

During the same month, international palm oil prices declined due to lingering heavy inventories that coincided with seasonally rising production in Southeast Asia.

FAO has lowered the forecast for global cereals trade in 2022-23 by 2.3 million tonnes, down to 467 million tonnes, pointing to a 2.4 per cent decline from the 2021-22 level, with foreseen contractions in trade of all major cereals.

“A lower global coarse grain production forecast makes up the bulk of this month’s overall cutback, as adverse weather continued to curb yield prospects in major producing countries,” FAO said.

The agency added that expected declines in wheat exports from Argentina, India and especially Ukraine from their previous season’s levels would likely outweigh foreseen more significant shipments by Canada, the EU and the Russian Federation, boosted by higher supplies.

World cereal use in 2022-23 is expected to surpass production at 2.784 million tonnes, leading to a projected 1.6 per cent fall in global stocks compared with 2021-22 to 848 million tonnes.