In January, world food prices decreased slightly, mainly due to cheaper grains and meat. The FAO food price index was 118 points. This is reported by the Food and Agriculture Organization of the United Nations (FAO).
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How the pricing policy has changed
“In January, the average value of the FAO Food Price Index, which monthly monitors the dynamics of world prices for food products, amounted to 118 points, which is 1% lower than in December and 10.4% lower than the corresponding figure for the same period last year,” the message says.
Compared to December, the value of the Cereal Price Index decreased by 2.2%. In January, a decrease in world export prices for wheat was recorded, caused by intense competition between exporters and the appearance on the market of a new crop from the countries of the Southern Hemisphere. World export prices for corn fell sharply, while world quotations for rice, on the contrary, increased by 1.2% in January.
The price index for vegetable oils increased slightly in January and was only 0.1% higher than the December figure, but still 12.8% lower than the value of January last year: a moderate increase in world prices for palm and sunflower oils offset the decline in prices for soybean and rapeseed vegetable oil.
The FAO price index for dairy products remained virtually unchanged compared to the revised value for December and was 17.8% lower than the corresponding figure for last year. In January, global quotations for butter and whole milk powder increased, almost completely covering the decline in quotations for skim milk powder and cheese.
The meat price index continued to decline for the seventh month in a row, decreasing by 1.4% compared to December: a significant volume of supply from leading exporting countries led to a decrease in world prices for poultry, beef and pork. International lamb prices, on the other hand, rose.
The Sugar Price Index rose 0.8% from December, driven by rising concerns about below-average rainfall in Brazil and the potential impact on crops sugarcane, along with unfavorable production forecasts in Thailand and India.