Food Prices Remain Stable in September

The Food and Agriculture Organization of the United Nations (UN FAO) reported that food prices remained stable in September. Despite rising sugar prices due to poor harvests in Asia, the strong supply of wheat and other key foodstuffs helped offset the increase.

According to the UN FAO's food price index, which tracks global prices for staple foods, the average index for September was 121.5 points. This is 24% lower than the peak in March 2022 and nearly 11% lower than the previous year. In August, the index stood at 121.4 points. The decline in prices was primarily driven by lower wheat and vegetable-oil prices.

However, sugar prices experienced a significant surge, with the price index rising nearly 10% during the month. This increase led to a 13-year high. Poor harvests in India and Thailand were reported as the main cause for the rise. Uneven weather patterns resulting from the El Nino weather phenomenon have also contributed to price increases in commodities like cocoa and coffee throughout the year.

Cereal prices saw an overall increase of 1% from August, primarily driven by a 7% rise in corn prices. The FAO attributed this increase to strong demand for Brazil's supplies, slower farmer selling in Argentina, and increased barge freight rates due to low water levels on the Mississippi River in the United States. Conversely, wheat prices fell 1.6% due to a strong supply from Russia.

Vegetable-oil prices experienced a decline of 3.9% in September, mainly due to decreases in palm and sunflower oil prices. The FAO noted that global exports of edible oils remained robust during the month.

Dairy prices continued their downward trend, falling 2.3% from August. This marked the ninth consecutive month of decline. Meat prices also decreased by 1%, primarily due to lower prices for pork, poultry, and sheep.

Overall, while there were some fluctuations in specific food categories, the steady supply of key foodstuffs helped maintain stability in food prices during September.