Lower wheat and maize prices have lead a decline in the Food Price Index of the Food and Agriculture Organisation of the United Nations (FAO) last month.
The index of world food commodity prices fell further in January, with decreases in the prices of cereals and meat more than offsetting an increase in sugar prices.
Down by 1% from December and 10.4% from its corresponding value in 2023, the index, which tracks world prices of food commodities, averaged 118 points last month.
The cereal price index dropped by 2.2%. Global wheat export prices fell due to strong competition among exporters and the arrival of recently harvested supplies in the southern hemisphere.
A sharp fall in maize prices, the FAO said, reflected improved crop conditions and the start of the harvest in Argentina and larger supplies in the US.
Dairy and meat prices
The dairy price index remained virtually unchanged from its December value, standing 17.8% below its value a year ago, figures published today (Friday, February 2), show.
World quotations for butter and whole milk powder (WMP) rose largely due to higher demand from Asian buyers, nearly offsetting declines in those for skim milk powder (SMP) and cheese.
The meat price index declined for the seventh consecutive month by 1.4%, as abundant supplies from leading exporting countries drove down prices of poultry, bovine and pigmeat.
By contrast, international ovine meat prices increased on high global import demand and lower supplies of animals for slaughter in Oceania, according to the FAO.
FAO Food Price Index
The price index of vegetable oils was up marginally by 0.1% from December, but was still 12.8% lower than last year, according to the FAO Food Price Index for January 2024.
This decline reflected moderate increases in international palm and sunflower seed oil prices offsetting declines in the prices of soy and rapeseed oils, the FAO said.
Palm oil prices were driven by seasonally lower production in major producing countries and concerns over unfavourable weather conditions in Malaysia.
Higher import demand pushed up sunflower seed oil prices. Soy and rapeseed oil prices fell due to prospects for large supplies from South America and lingering ample availabilities in Europe.
Sugar prices were up by 0.8 %, underpinned by concerns over the likely impact of below-average rains in Brazil, coupled with unfavourable production prospects in Thailand and India.
