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Against this backdrop, the FAO Food Price Index averaged 134.4 points in November, its highest level since June 2011 and 1.2 percent higher than in October. The index, which tracks monthly changes in international prices of commonly traded food products, was 27.3 percent higher than its level in November 2020.
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As such, the FAO Dairy Price Index led the aggregate increase in November, rising 3.4 percent from the previous month. Strong global demand for butter and milk powder imports persisted as buyers sought to secure spot supplies in anticipation of tougher markets.
Meanwhile, the Cereals Index increased by 3.1% in November compared to the previous month and was 23.2% higher than the previous year's level. Corn export prices increased slightly and international rice prices were generally stable, while wheat prices reached their highest level since May 2011. The increase reflected strong demand amid tight supply, especially quality wheat higher, while prices were also supported by concerns about premature rains in Australia and uncertainty regarding possible changes to export measures in the Russian Federation.
By: Leonardo Gottems | agrolink
