Global food prices hit 26-month high in November

By Tuba Sahin

ANKARA (AA) - World food prices recorded the 26-month high in November, according to the UN Food and Agriculture Organization (FAO) Thursday.

Averaging at 177.2 points last month, the FAO Food Price Index saw a surge of 2.7% or 4.7 points from a month earlier.

Significant jumps in the prices of meat products and vegetable oils pushed the overall figure to highest level since September 2017.

The FAO Food Price Index is a trade-weighted index that tracks international market prices of five major food commodity groups.

The vegetable price index soared 10% month-on-month in November to hit the highest level since May 2018, as palm oil price quotations rose amid robust global import demand.

The FAO meat price index saw its largest month-on-month increase in more than a decade, rising 4.6%.

"Price quotations for all types of meat represented in the Index firmed, with those of bovine and ovine rising the most, reflecting tight export availabilities against persistent strong import demand, especially from China," the report said.

In November, the sugar price index rose 1.8% from the previous month, due to mounting indications that world sugar consumption would surpass production in the 2019/20 season.

The FAO dairy price index rose marginally from October, as milk production in Europe entered its seasonal low and global demand remained strong.

On the contrary, the cereal price index slipped 1.2% during the same period, stemming from stiff competition among the world's leading wheat exporters and fall in rice values.