Benchmark for world food commodity prices down in January

International quotations for sugar and vegetable oils drive the FAO Food Price Index lower

The FAO Food Price Index, the benchmark for world food commodity prices, declined in January, averaging 124.9 points during the month, down 1.6 per cent from its December level. The drop was driven by significant decreases in the international quotations for vegetable oils and sugar, the Food and Agriculture Organization of the United Nations (FAO) reported.  

The index, which tracks monthly changes in the international prices of a set of globally traded food commodities, was 6.2 per cent higher than its corresponding level one year ago but remained 22.0 per cent below its peak reached in March 2022.

The FAO Sugar Price Index was down 6.8 per cent from December and 18.5 per cent from its year-earlier level, mainly due to improved global supply prospects as a result of generally favourable weather in Brazil and the Indian Government’s decision to resume sugar exports.

The FAO Vegetable Oil Price Index decreased by 5.6 per cent from the previous month, reversing a recent increase, though it remained 24.9 per cent higher than a year ago. The decline in January was mainly driven by lower world prices of palm and rapeseed oils, while those for soy and sunflower oils remained stable.

The FAO Meat Price Index also dropped, falling by 1.4 per cent in January, as lower international ovine, pig and poultry meat prices outweighed an increase in bovine meat quotations.

Meanwhile, the FAO Cereal Price Index increased by 0.3 per cent from December but remained 6.9 per cent below its January 2024 level. Wheat export prices dropped only slightly, while maize prices increased, partly due to lower production and stock forecasts for the United States of America. The FAO All Rice Price Index declined by 4.7 per cent in January amid ample exportable supplies.

The FAO Dairy Price Index increased by 2.4 per cent from December and was up 20.4 per cent from its January 2024 level. The rise was driven by a 7.6 per cent monthly surge in international cheese quotations, which outweighed declines in butter and milk powder prices.