The composite index, which tracks the prices of cereals, vegetable oils, dairy products, meat and sugar on international markets, fell by 1.1 points to 118 points in January compared to the previous month. This was the lowest value since February 2021. Compared to last January, the value of the index is lower by 10.4 percent.
The cereal price index decreased by 2.2 percent month-on-month. FAO notes that wheat export prices have decreased due to strong competition among exporters and the recent harvest in the southern hemisphere. Corn prices fell sharply due to better crop conditions and the start of harvest in Argentina, as well as higher US stocks.
Meat prices fell for the seventh consecutive month. High deliveries from the leading export countries reduced the prices of poultry, beef and pork. Compared to December, the meat price index was lower by 1.4 percent.
Sugar prices, on the other hand, increased by 0.8 percent. This is due to concerns about the negative impact of below-average rains in Brazil on the sugarcane crop and unfavorable production prospects in Thailand and India.
The FAO also said that world cereal production last year could reach a record 2.836 billion tons, up 1.2 percent from 2022. Production of coarse grains, which have a higher fiber content and are often used as animal feed , could be a record 1.523 billion tons, according to estimates.