🌍 September Surge: FAO Food Price Index Reaches Record Levels

 🔹 In September, the FAO Food Price Index rose by 3% to reach 124.4 points — the largest monthly increase since March 2022.

 🔹 Prices for all categories of goods, including cereals, sugar, and vegetable oils, showed growth. Notably, sugar prices increased by 10.4%.

 🔹 Adverse weather conditions in Canada and Europe led to an increase in global wheat and corn prices.

 

In September 2024, the FAO Food Price Index, compiled by the United Nations Food and Agriculture Organization (FAO), showed a significant increase, reaching 124.4 points. This is 3% higher than the previous month and represents the largest monthly growth since March 2022, according to a press release from FAO published on October 4.

 

Price increases affected all product categories included in the index. The biggest increase was seen in the sugar price index, which rose by 10.4%. Even smaller changes, such as a 0.4% rise in the meat price index, reflect the overall upward trend. Year-on-year, the index in September was 2.1% higher than the same period last year, but it remains 22.4% below its peak of 160.3 points, recorded in March 2022.

 

The cereal price index in September averaged 113.5 points, which is 3.3 points (or 3%) higher than August but 10.2% below the level of September 2023. After three months of decline, global wheat prices rose in September, mainly due to concerns about unfavorable weather conditions in some key exporting countries. Excessively wet weather in Canada delayed the harvest, and production forecasts in the EU were significantly reduced. However, competitive supplies from the Black Sea region capped further price increases.

Global corn prices also rose month-on-month, driven by low water levels in the Madeira River in Brazil and the Mississippi River in the USA, as well as high domestic demand in Brazil and strong export rates in Argentina.

The vegetable oil price index reached 142.4 points in September, rising by 4.6% compared to August. This is the highest figure since the beginning of 2023. The continued rise in the index was driven by increases in palm, soybean, sunflower, and rapeseed oil prices.

This dynamic in the global food market is of interest to agricultural experts, as weather factors, export opportunities, and domestic demand continue to shape price forecasts.