Global food prices rose 4% month-on-month in October, the biggest increase in three years.

According to overseas media reports, the El Ni ñ o phenomenon, the strongest in a century, has finally begun to show its power in the market, with global food prices rising the most in three years in October, represented by sugar, vegetable oil and dairy products.

According to the latest data released by the Food and Agriculture Organization of the United Nations, the global food price index rose by 4% in October, the biggest month-on-month increase in three years. Among the sub-indices of the index, the sugar price index rose 17.2% compared with September because of torrential rains in Brazil's main sugar-producing areas. At the same time, the dry weather in India and Thailand has also caused concern among market participants. In addition, international soybean oil prices also rose, mainly due to market concerns about the weather that blocked soyabean sowing in some major producing areas.

It is reported that this round of El Ni ñ o, which is sweeping the world, may be the strongest since records began in 1950, bringing torrential rain to parts of South America and drought to Southeast Asia. However, although the global food price index rose sharply from the previous month, it was still down 16 per cent from a year earlier. Some analysts said that agricultural stocks in major countries are still high, and from the medium-and long-term trend, agricultural prices as a whole is still in a downward trend. In the face of the reality of inventory, or stick to the expectations of rising food prices caused by El Ni ñ o, it depends on how agricultural investors play the game.