World food prices continued to stabilize in November, with lower cereal prices linked in particular to the extension of the Black Sea maritime corridor, the Food and Agriculture Organization of the United Nations announced on Friday. (FAO).
The FAO food price index, which tracks changes in international prices for a basket of commodities, fell very slightly from its level in October, and “is now only 0 .3% higher than its November 2021 level”.
The FAO Cereals Price Index began a 1.3% decline in November, with wheat down 2.8% and maize 1.7%, “partly reflecting the prolonged ‘agreement on Ukrainian grain exports to the Black Sea’.
The vegetable oil price index, on the other hand, “increased by 2.3% in November, ending seven consecutive months of decline”, underlines the FAO, under the effect of an increase in palm oil and soy.
Meanwhile, the FAO Sugar Price Index rebounded 5.2% in November. Harvest delays in the main producing countries and the lowering of the export quota in India are causing tensions and leading to an upsurge in purchases.
The economic organization once again lowered its outlook for world cereal production on Friday: it is expected to fall by 2% in 2022 compared to the previous year, a reduction which “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 cope with conflicts, extreme weather events and galloping inflation” , also reminds the FAO on Friday.
The UN on Thursday launched a record appeal for funds for 2023 and called for $51.5 billion to meet worsening humanitarian needs. They have been boosted in recent months by the conflict in Ukraine and by the effects of climate change, which has caused a dramatic drought in the Horn of Africa.
To “save the lives and safeguard the livelihoods of those most at risk of acute food insecurity,” FAO will need $1.9 billion next year, a sum that should provide assistance ” vital” to 48 million people.