The United Nations’ Food and Agriculture Organization (FAO) reported a notable increase in the world food price index for September, marking its largest gain in 18 months, primarily due to soaring sugar prices. The index rose to 124.4 points from 120.7 in August, reflecting a 2.1% increase year-on-year and reaching its highest level since July 2023.
The sugar index experienced a dramatic 10.4% month-on-month rise, attributed to poor crop forecasts in Brazil and concerns over India’s recent decision to lift restrictions on sugarcane use for ethanol production, which may impact export availability.
Other notable changes included:
The cereal price index increased by 3.0%, driven by higher wheat and maize export prices, while rice prices saw a slight decline of 0.7%.
Vegetable oil prices rose by 4.6%, with increases across palm, soy, sunflower, and rapeseed oils.
Dairy prices climbed by 3.8%, with higher costs for whole milk powder, skim milk powder, butter, and cheese.
Meat prices experienced a modest increase of 0.4%.
In a separate report, the FAO slightly raised its forecast for global cereal production in 2024 to 2.853 billion tonnes, reflecting upward adjustments in rice and wheat outputs, despite a small reduction in coarse grains production. World cereal utilization is projected to rise by 12.4 million tonnes to match the production forecast, while the agency has reduced its estimate for global cereal stocks at the end of the 2025 season by 1.7 million tonnes to 888.1 million.