The FAO Food Price Index* (FFPI) averaged 171.3 points in November 2016, only 0.4 percent below its October level, but still 10.4 percent higher than in November 2015. The month-to-month small decline marked a departure from an almost uninterrupted rising trend in the Index since the start of the year. November’s easing was driven by a sharp dip in sugar prices, which more than offset a strong rebound in the prices of vegetable oils.
The FAO Dairy Price Index averaged 186.4 points in November, up 3.6 points (1.9 percent) from October. Quotations rose for Whole Milk Powder (WMP) in particular; butter also firmed. Sustained import demand by markets in the Middle East and North Africa, plus China, combined with limited availability from New Zealand, the main world supplier, led to WMP prices jumping by 9 percent. For butter, the market tightened due to rising domestic usage in the EU and the United States and robust import demand elsewhere. Cheese and Skimmed Milk Powder supply and demand were well-balanced, and prices remained steady.