World food commodity prices decline in January

Global food commodity prices fell in January, led by sharp declines in sugar and vegetable oils. The Food and Agriculture Organization (FAO) Food Price Index dropped to an average of 124.9 points, marking a 1.6 % decrease from December.

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January saw a decline in the FAO Food Price Index, the global benchmark for food commodity prices, which averaged 124.9 points – a 1.6% drop from December. Although the index remains 6.2% above its level a year ago, it is still 22% below its peak reached in March 2022. The decline was primarily driven by significant decreases in the international prices of vegetable oils and sugar, according to the Food and Agriculture Organization (FAO) of the United Nations.

The FAO Sugar Price Index declined by 6.8 % from December and 18.5 % from the previous year, mainly as a result of improved global supply prospects due to favorable weather in Brazil and India’s decision to resume sugar exports.

In addition, the FAO Vegetable Oil Price Index fell by 5.6 % from the previous month, reversing a recent upward trend, although it remains 24.9 % higher than a year ago. Lower prices for palm and rapeseed oils largely contributed to this drop, while prices for soy and sunflower oils stayed stable. 

The FAO Meat Price Index also decreased by 1.4 % in January, as reductions in international ovine, pig, and poultry meat prices offset a rise in bovine meat quotations.

Meanwhile, the FAO Cereal Price Index edged up 0.3 % from December but was still 6.9% below its January 2024 level. Wheat export prices dropped slightly, while maize prices increased partly due to lower production forecasts in the United States. The FAO All Rice Price Index declined by 4.7 % amid abundant exportable supplies, whereas the FAO Dairy Price Index increased by 2.4 %, driven by a 7.6 % monthly surge in international cheese quotations.

The agency also released a new Cereal Supply and Demand Brief highlighting early cropping trends for 2025, with changes in winter wheat plantings, improved maize yields, and adjustments in global cereal stocks and trade forecasts overall.