International Sugar Prices Decline for the First Time in 3 Months... Dairy Prices Rise 2.2%

Global food prices have declined for the third consecutive month. This is due to price drops in grains, oils, meats, and sugar, with sugar prices turning downward after three months.

According to the United Nations Food and Agriculture Organization (FAO) on the 4th, the global food price index for October recorded 120.6 points, down 0.5% from the previous month (121.3 points), maintaining a gradual downward trend. Dairy prices rose by 2.2%, but prices for grains (-1.0%), oils (-0.7%), meats (-0.6%), and sugar (-2.2%) all declined.

Last month, the price inflation rates of sugar and salt simultaneously reached their highest levels in a year, and on the 11th, sugar was displayed at Yangjae Hanaro Mart in Seoul. Photo by Jinhyung Kang aymsdream@

The grain price index fell 1.0% from 126.3 points last month to 125.0 points. International wheat prices dropped as the U.S. wheat harvest exceeded expectations. Corn prices rose due to reduced supply from Argentina, but the increase was limited as harvesting progressed in the U.S. and Brazilian exports grew. Rice prices declined following a global decrease in demand.

The oils price index decreased 0.7% from 120.9 points last month to 120.0 points. Palm oil prices fell due to increased supply from major producing countries coinciding with weak international import demand. However, soybean oil prices rose internationally due to increased biodiesel demand in the U.S. and other countries, sunflower oil prices increased with rising global demand, and canola oil prices went up due to deteriorating production outlooks in Canada.

The meat price index recorded 112.9 points, down 0.6% from 113.6 points last month. Pork prices declined internationally as import demand weakened mainly in East Asian countries and exportable volumes from major producers increased. Conversely, poultry prices rose despite supply constraints caused by avian influenza in major producing countries, as consumer demand remained steady due to relatively low prices. Beef prices increased internationally as supplies from Australia and Brazil were sufficient, but demand from major importing countries steadily grew.

Sugar prices fell for the first time in three months, with the index dropping 2.2% from 162.7 points last month to 159.2 points in October. Rapid production in Brazil, a weaker Brazilian real against the U.S. dollar, and falling ethanol prices in Brazil contributed to the downward trend in international sugar prices. However, concerns persist that international sugar supply for 2023?2024 will be insufficient, and logistical disruptions delaying Brazilian sugar shipments limited the extent of the price decline.

The dairy price index rose 2.2% from 108.9 points last month to 111.3 points. Factors such as increased demand for milk powder in Northeast Asia, milk production shortages in Western Europe, and concerns over reduced milk production in Oceania due to El Ni?o combined to push international milk powder prices higher. Butter prices increased as retail sales rose ahead of the winter holiday season in Western Europe and import demand grew in Northeast Asia. In contrast, cheese prices declined due to the continued weakness of the euro against the U.S. dollar and increased export supplies from Oceania.

This content was produced with the assistance of AI translation services.