Global Food Prices: September's Surprising Shift
Global food commodity prices fell in September, as sugar and dairy prices dropped sharply, despite a peak for meat prices, according to the United Nations' FAO. This decrease is a significant shift from the price hikes observed after Russia's invasion of Ukraine. The decline was attributed to improved supply conditions and decreased international demand.
In a notable shift, global food commodity prices decreased in September, driven by significant drops in sugar and dairy, despite hitting record highs for meat prices, the United Nations' Food and Agriculture Organization (FAO) reported last Friday.
The FAO Food Price Index, which monitors a diverse basket of internationally traded food commodities, averaged 128.8 points in September, down from 129.7 in August. Although up 3.4% from a year earlier, the index stands nearly 20% below the peak witnessed in March 2022, following Russia's invasion of Ukraine.
The dip in sugar prices, the lowest since March 2021, was attributed to favorable production forecasts in major producers like Brazil, India, and Thailand. Concurrently, decreased demand led to a 0.6% decline in the cereal benchmark, influenced by substantial wheat harvests. In stark contrast, meat prices surged, driven mainly by the strong U.S. beef market amid limited supplies.
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