On October 4^th the United Nations Food and Agricultural Organization released the Index of Food Commodities for September 2024.  A sequential monthly reduction in food prices over a year was reversed by the 3.0 point increase in the Index from August 2024 to the most recent value of 124.4, for the past month.

Components of the Index included:-

• The Meat index was up 0.4 points from August to 119.6 points with higher demand for chicken products exported from Brazil following expiry of embargos after an alleged ‘Newcastle disease’ break.  Prices for beef and pork were stable and mutton was down.
• The Cereal Index was up 3.0 points from August to 113.5 points due to higher wheat prices affected by delayed and lower harvests in Canada, the E.U. and the drought-affected Baltic region.
• The Vegetable Oil Index in September was up 6.2 points from August to 142.4 points with  higher prices for soy, sunflower and palm oils. This was due to increased world demand and diversion of soybean oil to biodiesel in the U.S. Asian palm oil production was down.
• The Dairy Index was up 5.0 points from August to 136.3 in September and up  from 112.0 points in September 2023 on increased demand.

There is concern over projected lower yields for crops in Brazil and Argentina due to drought coincident with transition to a La Nina event. Restoration of Black Sea shipping using the ‘Humanitarian Corridor’ along the eastern seaboard of Ukraine and Bulgaria has increased availability of grains and oilseeds and contributed to a moderation in prices to dependent nations.