Geneva - UpaliGalketiAratchilage, FAO Senior Economist addressed the Geneva Press Corp on the latest updates of the FAO Food Price Index for November 2022 at the Biweekly Press Briefing organized by the United Nations Information Service (UNIS) in Geneva. 

During the press briefing, GalketiAratchilage said the FAO Food Price Index (FFPI) remained virtually unchanged in November for the second consecutive month, as month-on-month decreases in cereals, dairy and meat were nearly offset by increases in those of vegetable oil and sugar.  

FAO Cereal Price Index declined by 1.3 percent month-on-month in November, reflecting weaker wheat and coarse grain prices, but rice prices rose further. However, the cereal price index stood 6.3 percent above its value a year ago. The decline in international dairy prices was driven by lower prices of milk powders and butter and the international meat prices declined for the fifth consecutive month, principally due to a sharp fall in bovine meat prices, offsetting increases in the prices of poultry, pig and ovine meat. 

However,vegetable oil prices increased after declining for seven consecutive months. The increase was driven primarily by higher palm oil prices, underpinned by renewed global import demand and concerns over lower production potential in parts of Southeast Asia due to excessive rainfall. By contrast, international rapeseed oil prices dropped in November, weighed by expected ample global supplies.Sunflower oil prices declined, reflecting the possibility of easing supply with the extension of the Black Sea Grain Initiative. 

World sugar prices also increased after six months of consecutive declines, mainly on solid import purchases, with market concerns over tight global supplies amid some harvest delays in key producing countries and the announcement by India of a lower sugar export quota. Despite this decline, sugar price quotations remained nearly 6 percent below their levels in November 2021, reflecting good supply prospects in the 2022/23 season. 

GalketiAratchilage concluded that market conditions for the major food commodities have eased, somewhat lowering food price inflationary pressure.However, he added that concerns over the possible impacts of extreme weather events, high fertilizer prices and economic recessions on global food prices and food security remain. 

Answering questions from journalists, GalketiAratchilage said FAO was looking into including pulses in the price index; and that world production of rice in 2022 was expected to remain below last year’srecord. 

FAO Liaison Office in Geneva