FAO – Monthly Report on Food Price Trends, Dec 2023

In November, international cereal prices continued to decrease. This was mainly due to the seasonal harvest pressure, which led to a decline in world prices of coarse grains and wheat. The price of rice remained stable, although there were varying price trends across different origins and market segments. In many countries monitored by the FAO, annual food inflation remained high in November, with domestic staple food prices increasing compared to the previous year. Various factors such as conflict, insecurity, extreme weather events related to the El Niño phenomenon, and macroeconomic difficulties like currency weakness have hindered food production and marketing activities in some countries. This has particularly affected net food importers. The price of maize saw the most significant decrease in November, with increased farmer selling in Argentina contributing to a 3.7 percent decline in prices. The United States also experienced a 5.2 percent decrease in maize prices due to higher national supplies. On the other hand, maize prices in Brazil remained stable. International wheat prices also fell in November as the harvests progressed in Argentina and Australia, leading to increased supplies and lower prices. The United States saw a 1.3 percent decrease in wheat prices due to strong competition from Russia. The price of rice remained unchanged in November, with the FAO All Rice Price Index averaging 138.9 points. However, rice prices varied in major Asian exporters, with Vietnamese prices reaching their highest level since July 2008 due to previously contracted deals in a tight supply context. In contrast, new crop arrivals lowered prices in Pakistan for 25% broken rice and stabilized prices in Thailand for 100% B white rice. In the Americas, US rice prices slightly increased due to prospects of reduced competition from South American exporters.