World Food Price Index Remains Stable in November

World Food Price Index Remains Stable in November
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World Food Price Index Remains Stable in November

World Food Price Index Remains Stable in November

The United Nations food agency's global price index remained stable in November amid decline in international prices of cereals, meat and dairy products driven by the agreement to prolong a UN-backed grain export channel from Ukraine.

The Food and Agriculture Organization (FAO) price index, which tracks the most globally traded food commodities, averaged 135.7 points in November, down from 135.9 for October, the agency said on Friday.

It pointed out that the figures published mark an eighth straight monthly fall since a record high in March after Russia’s invasion of Ukraine.

Lower readings for cereals, meat and dairy products in November offset higher prices for vegetable oils and sugar, the FAO said.

The slight decrease in November meant that the FAO food index is now only 0.3% above its level a year earlier, the agency added.

Last month's agreement to prolong a UN-backed grain export channel from Ukraine for another 120 days has tempered worries about war disruption to massive Black Sea trade.

The FAO Cereal Price Index declined by 1.3% from the previous month, but it was still up 6.3% from its value a year ago.

World wheat and maize prices declined in November by 2.8% and 1.7%, respectively, partly influenced by the extension of the Black Sea Grain Initiative.

The FAO Vegetable Oil Price Index increased by 2.3% in November, ending seven consecutive months of decline. International palm and soy oil prices rose, while those of rapeseed and sunflower oils dropped.

The FAO Sugar Price Index rose 5.2% in November, influenced by strong buying trend amid tight global sugar supplies due to harvest delays in key producing countries and the announcement by India of a lower sugar export quota.

In separate cereal supply and demand estimates, the FAO lowered its forecast for global cereal production in 2022 to 2.756 billion tons from 2.764 billion estimated last month.

The forecast was 2% below the estimated output for 2021 and would mark a three-year low, the agency noted.

The agency further stated on Friday that 45 countries around the world, including 33 in Africa, nine in Asia, two in Latin America and the Caribbean and one in Europe, are assessed to be in need of external assistance for food due to conflicts, extreme weather events and soaring inflation rates.

Separately, the UN Office for the Coordination of Humanitarian Affairs (UNOCHA) launched on Thursday the Global Humanitarian Appeal for 2023 with a record $51.5 billion required to reach 230 million people in crisis.

As part of the appeal, the FAO said that it would need $1.9 billion to reach 48 million who rely on agriculture and subsistence farming, with lifesaving and livelihood assistance in 2023.



Gold Bolts Past Key $3,200 Mark on Dollar Slide, Safe-haven Flows

A gold bullion is displayed in The Reserve vault, operated by Silver Bullion Pte Ltd, in Singapore April 10, 2025. REUTERS/Edgar Su
A gold bullion is displayed in The Reserve vault, operated by Silver Bullion Pte Ltd, in Singapore April 10, 2025. REUTERS/Edgar Su
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Gold Bolts Past Key $3,200 Mark on Dollar Slide, Safe-haven Flows

A gold bullion is displayed in The Reserve vault, operated by Silver Bullion Pte Ltd, in Singapore April 10, 2025. REUTERS/Edgar Su
A gold bullion is displayed in The Reserve vault, operated by Silver Bullion Pte Ltd, in Singapore April 10, 2025. REUTERS/Edgar Su

Gold prices breached the crucial $3,200/oz level for the first time on Friday, fueled by a weaker dollar and an escalating trade war that sent investors rushing toward safe-haven assets.
Spot gold was up 0.6% at $3,192.79 an ounce, as of 0555 GMT. Bullion scaled an all-time peak of $3,219.84 earlier in the session, and has gained around 5% this week.
US gold futures climbed nearly 2% to $3,237.50, Reuters reported.
"The rapid weakening of the US dollar seems to be the main driver of gold's rebound at the moment. That seems to reflect an ongoing exodus from USD-based assets, with stocks and bonds' selloff amid tariff policy uncertainty," said Ilya Spivak, head of global macro at Tastylive.
The dollar was down nearly 1% against its major peers, making greenback-priced bullion cheaper for overseas buyers. Major stock indexes also fell after US President Donald Trump ratcheted up tariffs on Chinese imports to 145%, but hit a 90-day pause on previously announced tariffs for dozens of countries.
China has been matching Trump's tariff hikes, sparking fears that Beijing could push duties on the US beyond the current 84%.
"$3,500 is the next round number people will be looking at. I suspect we won't get there immediately or without bumps along the way," Capital.com's financial market analyst Kyle Rodda said.
Apart from tariffs, central bank demand, expectations of interest rate cuts by the Federal Reserve, geopolitical instability in the Middle East and Europe, and increased flows into gold-backed exchange-traded funds also fueled the metal's rally this year.
US consumer prices fell unexpectedly in March but inflation risks are tilted to the upside, data showed.
Traders now bet that the Fed will resume cutting rates in June and probably reduce by a full percentage point by the end of 2025.
Spot silver was steady at $31.2 an ounce, while platinum eased 0.2% to $936.55. Palladium gained 0.7% to $914.55.