International food commodity prices eased in October as cheaper cereals, dairy products and meat outweighed increases in sugar and vegetable oils, the UN Food and Agriculture Organization said on Friday, 6 November.
The FAO Food Price Index averaged 133.9 points. Although lower than in September, it remained 5.9% above its level a year earlier.
The cereal index fell 4.5% over the month. FAO linked lower wheat quotations to subdued international demand and an improving production outlook, particularly in Argentina.
Sugar moved in the opposite direction, rising 6.6% for a fourth consecutive monthly increase. FAO cited rainfall-related disruption to harvesting and crushing in Brazil’s Centre-South region, alongside concerns about production elsewhere.
Dairy prices fell 1.1% and meat prices 1.2%, while vegetable oils edged up 0.3%.
The index measures international commodity prices, rather than South African supermarket prices. Its five commodity groups are weighted using their average shares of exports over 2014–2016.
