FAO: World food commodity market index decreased in January

The FAO food price index, which tracks monthly price changes for the most important food commodities in international trade, was 6.2% higher than a year ago, but 22.0% below its peak in March 2022.

The FAO Sugar Price Index fell by 6.8% compared to December and by 18.5% compared to a year earlier, mainly due to improving global supply prospects – mainly due to generally favourable weather conditions in Brazil and the decision by the Indian government to continue sugar exports.

Vegetable oil prices were 5.6% lower than the previous month, reversing recent increases, but still 24.9% higher than a year ago. The decline in January was mainly due to lower world prices for palm and rapeseed oil, while soybean and sunflower oil prices remained unchanged.

The FAO meat price index also fell by 1.7% in January, as declines in international prices for sheep, pork and poultry outweighed increases in beef quotations.

Meanwhile, the FAO cereal price index rose by 0.3% compared to December, but remained 6.9% below its January 2024 level. Wheat export prices fell only slightly, while maize prices rose, partly due to lower production and stock forecasts for the United States. The FAO total rice price index was 4.7% lower in January, amid ample export stocks.

Dairy prices rose by 2.4% since December and 20.4% from their January 2024 levels. The increase was driven by a 7.6% monthly increase in international cheese quotations, which offset the decline in butter and milk powder prices.