World meals costs attain 19-month excessive in November, UN says

LONDON (Reuters) – The United Nations’ world meals worth index rose in November to its highest degree since April 2023, recording its greatest acquire in 19 months on the again of surging vegetable oil costs, knowledge confirmed on Friday.

The value index, compiled by the U.N. Meals and Agriculture Group (FAO) to trace essentially the most globally traded meals commodities, elevated to 127.5 factors final month from a revised 126.9 factors in October, the very best degree in 19 months and up 5.7% from a 12 months in the past.

The vegetable oil index jumped 7.5% above ranges seen a month in the past and 32% above these seen a 12 months earlier, pushed by issues over decrease than anticipated palm oil output because of extreme rainfall in Southeast Asia.

Soyoil costs rose on stronger world import demand, whereas rapeseed and sunflower oil additionally elevated.

Different meals worth indexes declined.

Cereal costs dropped 2.7% from October because of weaker wheat and rice costs, whereas sugar fell 2.4% from October as India and Thailand started crushing and issues over Brazil’s crop prospects eased.

In a separate report, the FAO trimmed its forecast for world cereal manufacturing in 2024 from 2.848 billion metric tons to 2.841 billion, a 0.6% decline from final 12 months however nonetheless the second largest output on file.

World cereal utilisation, in the meantime, is ready to extend 0.6% to 2.859 billion tons in 2024/25 because of rising consumption.

Because of this, the FAO expects the cereal stocks-to-use ratio to fall to 30.1% on the shut of the 2025 season from 30.8% beforehand, however nonetheless indicating a “snug degree of world provide”.