Rome - 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 percent 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 Friday.
The index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, was 6.2 percent higher than its corresponding level one year ago but remained 22.0 percent below its peak reached in March 2022.
The FAO Sugar Price Index was down 6.8 percent from December and 18.5 percent 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 percent from the previous month, reversing a recent increase, though it remained 24.9 percent 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 1.7 percent 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 percent from December but remained 6.9 percent 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 percent in January amid ample exportable supplies.
The FAO Dairy Price Index increased by 2.4 percent from December and was up 20.4 percent from its January 2024 level. The rise was driven by a 7.6 percent monthly surge in international cheese quotations, which outweighed declines in butter and milk powder prices.
