ROME The index for the world market price of important agricultural products rose again in November. The price of pork fell.
World prices for major agricultural commodities rose on average in November 2021 for the fourth consecutive month, reaching the highest level since June 2011. The Food and Agriculture Organization of the United Nations (FAO) said today in Rome that the price index it calculates across all commodity groups considered rose 1.2 percent from October to 134.4 points. According to the FAO, the increase in agricultural prices compared with October was mainly due to higher prices for dairy products and cereals.
Milk and cereals significantly more expensive
The FAO sub-index for dairy products rose 3.4 percent month-on-month. According to experts, international quotations for butter and milk powder, in particular, rose strongly in November, due to buoyant demand on the world market coupled with limited availability of exportable goods and only small quantities left in storage. According to the FAO, grain prices rose by an average of 3.1 percent compared with October. The market experts justify this, among other things, by the strong demand for wheat, which was offset by a shortage of supply. This also provided additional support for the barley market, which was also tightly supplied. Meanwhile, the price of corn had risen only slightly.
The FAO sub-index for sugar also rose in November compared with the previous month, by 1.4 percent. This almost made up for the October markdowns. Higher ethanol prices are cited as the main trigger. It is expected that ethanol production in Brazil will be expanded at the expense of sugar production.
Vegetable oils and meat cheaper
In contrast, vegetable oil prices fell on average by 0.3 percent month-on-month, according to FAO data. Prices for soybean and rapeseed oil fell slightly, while palm oil moved sideways.
The FAO Meat Price Index fell slightly more, by 0.9 percent, in the month under review. The FAO noted that pork prices continued to fall as China's demand weakened, affecting European products in particular. However, beef and poultry prices remained stable.
Source: fleischwirtschaft.de; AgE