Oils Push Global Food Prices to 10-Year High

Feb. 8, 2022
Global food prices rose in January to their highest levels in 10 years, driven by rising prices for commodities, especially vegetable oil.

Global food prices rose in January to their highest levels in 10 years, driven by rising prices for commodities, especially vegetable oil.

The Food and Agriculture Organization (FAO) of the United Nations reported that vegetable oils were up 4.2% in January from the previous month, leading all other commodities in price increases and marking an all-time high. Palm oil was up due to concerns over interruptions in supply from Indonesia, the world’s leading producer. Soybean oil prices were buoyed by increased demand from India, while other oils were hit by surging demand and decreased supplies.

“Reduced export availabilities on top of other supply-side constraints, especially labor shortages and unfavorable weather, largely pushed vegetable oil prices up to an all-time high,” the director of FAO’s Markets and Trade Division said in a statement. “There is a concern the impacts of these constraints will not ease quickly.”

Dairy prices were up 2.4% in January over December, marking the fifth consecutive monthly increase. The steepest increases were for butter and skim milk powder. Grains and meat showed smaller increases.

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