The FAO Food Price Index , released today, rose slightly in October to 205.8 points. While this is about 1.3 percent higher than in September, it is still 5.3 percent below its October 2012 levels. This small increase was driven mainly by rising sugar prices.
The Cereals Price Index was up two points from September as well, but also remains significantly (22 percent) below last year's levels. Expected record cereal production and a favorable supply outlook for most cereals kept prices mostly in check, although wheat prices rose on increased import demand and decreased production in Argentina and the Black Sea region. The Vegetable Oil Price Index also rose slightly to 188 points in October, driven mostly by palm oil prices. Soy oil stabilized well below the levels seen in October 2011 and 2012.
Dairy prices rose by 1 point, while sugar prices surged by 18.4 points. Meat prices remained virtually unchanged in October.
The latest AMIS Market Monitor was also released today. The report is seeing bumper crops by several major producers; this surplus is expected to boost global production to record levels. International grains prices all remain well below last year's levels.