ITALY — An extension of the Black Sea Grain Initiative came as a relief to the world commodity market which had gotten jittery over fears that Russia would back out of the plan aimed at securing a safe passage for Ukrainian grain exports.

With the availability of Ukrainian grain in  the global market assured, prices of various grains stabilized leading to a 1.3% drop in the  he United Nations’ Food and Agriculture Organization’s (FAO) Cereal Price Index for the month of November.

The CPI averaged 150.4 points in November, down 1.9 points from October. However, it is 9 points above its value in November 2021.

World wheat prices registered a 2.8% decline during the month of November, mostly driven by Russia rejoining the Black Sea Grain Initiative.

According to a World Grain report,  the extension of the agreement, subdued import demand for supplies from the United States due to uncompetitive prices, and greater competition in global markets with increased shipments from Russia.

International prices of coarse grains also eased in November, down 1% from October while Maize prices declined by 1.7% month-on-month.

According to FAO, this was also influenced by developments in the Black Sea Grain Initiative, while improved transport on the Mississippi River in the United States weighed on prices as well.

International prices of sorghum, on the other hand, declined by 1.2% in November in tandem with maize prices, while barley prices increased by 2.5%.

International rice prices moved up by another 2.3% in November, influenced by currency appreciations against the US dollar for some Asian suppliers and good buying interest.

The FAO also announced on Dec. 2 that its Food Price Index (FPI) averaged 135.7 points in November 2022, virtually unchanged from October.

Month-on-month decreases in the price indices for cereals, dairy, and meat during this period, nearly offsetting increases in those of vegetable oils and sugar.

At this level, the index stood only marginally above (0.3%) its corresponding value in November 2021.

November marked the eighth straight month that the FPI had declined. However, it remains at a historically high level after reaching a 10-year peak in 2021.

For all the latest food industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube channel.