LONDON – The United Nations’ world meals worth index rose in November to its highest stage since April 2023, recording its largest acquire in 19 months on the again of surging vegetable oil costs, knowledge confirmed on Friday.
The worth index, compiled by the U.N. Food and Agriculture Organization (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 best stage in 19 months and up 5.7% from a yr in the past.
The vegetable oil index jumped 7.5% above ranges seen a month in the past and 32% above these seen a yr earlier, pushed by issues over decrease than anticipated palm oil output on account of extreme rainfall in Southeast Asia.
Soyoil costs rose on stronger world import demand, whereas rapeseed and sunflower oil additionally elevated.
Other meals worth indexes declined.
Cereal costs dropped 2.7% from October due to 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 yr however nonetheless the second largest output on report.
World cereal utilisation, in the meantime, is about to extend 0.6% to 2.859 billion tons in 2024/25 due to rising consumption.
As a end result, 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 stage of world provide”.
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