A worker holds corn from a truck that is loaded with Ukrainian corn from the Panama-flagged ship AK Ambition at Tripoli seaport, in Tripoli, north Lebanon, September 26, 2022. /CFP
Increased stability in grain exports from Russia and Ukraine sent global prices for grains and cereals lower in November, the Rome-based United Nations Food and Agriculture Organization (FAO) reported on Friday.
The broader FAO Food Price Index was flat compared to a month earlier, remaining near record highs.
The organization said that Russia rejoining the Black Sea Grain Initiative was a driving force in November, pushing global prices for wheat 2.8 percent lower.
The FAO's sub-index for grains and cereals, which includes wheat, also declined, though only by 1.3 percent. The sub-index is the largest component of the main Food Price Index.
Black Sea ports, normally major trading hubs for wheat and other grains, have been unreliable since the start of the conflict between Russia and Ukraine in February, pushing prices to record highs earlier in the year.
After a period outside the initiative, Russia rejoined it in November, and the terms of the agreement were extended into 2023.
The stability in wheat exports connected to the Black Sea Grain Initiative was enough to balance higher demand from the United States and some European countries, said the FAO.
The overall Food Price Index was unchanged from October. However, it remained 0.3 percent above its level from a year earlier, which was, at the time, the highest on record.
The index reached record levels in February and March. Yet, it has slowly declined or held steady since then, as markets adapt to the difficulties stemming from the Ukraine conflict.
The FAO said global prices for vegetable oil rose by 2.3 percent, pushed higher by unusually high demand for palm oil and soy oil. Meanwhile, sugar prices rose 5.2 percent after declining for six consecutive months. Lower export quotas in India and less availability from Brazil were the main factors behind the reversal.
Dairy prices were 1.2 percent lower in November but were still 9.2 percent higher than a year earlier. Challenges to supply routes caused prices to rise over the past half year.
Meat prices were 0.9 percent lower, the FAO said. However, the sub-index was still 4.1 percent above its level one year ago.
The FAO's Food Price Index tracks prices for 23 food commodity categories and 73 products worldwide every month.