ROME, ITALY — Driven by higher price quotations for dairy products and vegetable oils, the Food and Agriculture Organization (FAO) of the United Nations’ Food Price Index (FPI) in November rose to its highest level since April 2023.

The index, which was released by the FAO on Dec. 6, averaged 127.5 points last month, up 0.5% from October. It was 5.7% higher than its corresponding value a year ago but 20% below its all-time high of 160.2 points in March 2022.

The FAO’s Cereal Price Index (CPI) averaged 111.4 points in November, down 3 points (2.7%) from October and 9.6 points (8%) below its November 2023 value. Global wheat prices declined month on month due to increased supplies from the ongoing harvests in the Southern Hemisphere and improved crop conditions for the 2025 harvests in some major Northern Hemisphere exporting countries. Weaker international demand also contributed to the softer price tone.

World corn prices remained stable in November. Downward pressure on prices stemmed from generally favorable weather in South America with the continuing sowing, weaker demand for Ukrainian supplies, and seasonal pressure from the ongoing harvest in the United States, while strong domestic demand in Brazil and Mexico’s demand for US supplies provided upward support. 

Among other coarse grains, barley and sorghum prices declined slightly in November. The FAO All Rice Price Index declined by 4%, driven by price falls across major market segments resulting from increased market competition, harvest pressure, and currency depreciations against the US dollar.

The FAO Vegetable Oil Price Index averaged 164.1 points in November, rising 11.4 points (7.5%) month on month to reach its highest level since July 2022. The increase was driven by higher quotations for palm, rapeseed, soy and sunflower oils.

International palm oil prices increased for the sixth consecutive month, maintaining a premium over alternative oils due to lingering concerns about lower-than-expected global production amid excessive rainfall in Southeast Asia. Meanwhile, world soy oil prices also continued to rise, mainly due to robust global import demand.