Global food prices continued to stabilize in November, with lower grain prices linked in particular to the extension of the Black Sea maritime corridor, the United Nations’ Food and Agriculture Organization (FAO) announced on Friday.
The FAO Food Price Index, which tracks changes in international prices for a basket of goods, has fallen very slightly from its October level and “is now just 0.3% higher than November 2021 levels”.
The FAO Grain Price Index started November down 1.3%, with wheat down 2.8% and corn down 1.7%, “partly reflecting the extended ‘Agreement on Ukrainian Grain Exports to the Black Sea’.
The vegetable oil price index, on the other hand, “in November rose by 2.3%, ending seven consecutive months of decline”, stresses the FAO, under the influence of a rise in palm oil and soybean.
Meanwhile, the FAO sugar price index rallied 5.2% in November. Harvest delays in the main producing countries and the reduction in the export quota in India are creating tension and leading to an increase in purchases.
The economic organization on Friday again lowered its forecast for global grain production: it is expected to fall by 2% year-on-year in 2022, a reduction that “partly reflects the weak outlook for corn production in Ukraine.”
“45 countries, including 33 in Africa, nine in Asia, two in Latin America and the Caribbean and one in Europe, need external food aid to deal with conflict, extreme weather events and runaway inflation,” the FAO warned on Friday.
The UN launched a record appeal for funds for 2023 on Thursday, calling for $51.5 billion to help meet deteriorating humanitarian needs. They have been intensified in recent months by the conflict in Ukraine and the effects of climate change, which has led to a dramatic drought in the Horn of Africa.
To “save the lives and secure livelihoods of those most at risk of acute food insecurity,” the FAO needs $1.9 billion next year, a sum that should help 48 million “essential” people.