FAO: November’s Global Oil Rally and Food Price Insights

 FAO: November’s Global Oil Rally and Food Price Insights
A buyer chooses a sunflower oil, Russia. (Photo: RIA Novosti/Vladimir Astapkovich)

World oil prices soared by 3.4 percent in November, driven notably by a remarkable 6.0 percent surge in palm oil, fueled by intensified purchases from major importing nations and seasonal production constraints in key producer nations. Simultaneously, sunflower oil experienced moderate growth, the Food and Agriculture Organization of the United Nations (FAO) reports.

Despite a decline in international grain quotations, global food prices exhibited stability in November, as rising vegetable oil prices offset the fall. The FAO Food Price Index for November averaged 120.4 points, marking a 10.7 percent decrease from the same month in 2022. The FAO Cereal Price Index saw a 3 percent drop compared to October.

In the dairy sector, the FAO Dairy Price Index witnessed a 2.2 percent increase, attributed to heightened import demand in Northeast Asia and Western Europe. The Sugar Price Index rose 1.4 percent from the previous month, reaching a substantial 41.1 percent increase compared to November 2022.

Contrastingly, the FAO Meat Price Index experienced a 0.4 percent decrease in October, primarily due to marginal declines in global prices for poultry, pork, and beef.