FAO Food Price Index average falls for fifth consecutive month

In January, the average value of the FAO Food Price Index decreased by 0.4% compared to December to 123.9 points, which is 0.6% lower than the January 2025 indicator and 22.7% lower than the peak indicator of March 2022. The decrease in the price indices for dairy products, sugar and meat exceeded the increase in prices for cereals and oils.

 

The average value of the FAO Cereal Price Index in January increased by 0.2% compared to December to 107.5 points, which is 3.9% lower than the figure for January 2025. World wheat prices decreased in January due to active exports from Canada and Australia and difficult weather conditions in the USA and the Russian Federation. Corn prices decreased against the background of significant supply. Barley prices increased due to active demand for supplies from Argentina. The FAO All-Rice Price Index increased by 1.8% against the background of high demand.

 

The average FAO Vegetable Oil Price Index increased by 2.1% compared to December to 168.6 points, which is 10.2% higher than the January 2025 figure. Palm oil prices are rising against the backdrop of a seasonal decline in production and high demand, soybean oil – against the backdrop of reduced exports from South America and active demand from biofuel producers in the USA, and sunflower oil – due to a supply shortage in the Black Sea region. Rapeseed oil prices fell due to significant stocks in the EU caused by active rapeseed imports.

 

The average FAO Meat Price Index fell by 0.4% to 123.8 points, up 6.1% from January 2025. Beef and lamb prices remained stable, while pork prices fell due to lower demand and large supply during the New Year holidays. At the same time, poultry prices increased due to strong demand, especially in Brazil.

 

The average value of the FAO Dairy Price Index fell by 5% to 121.8 points, which is 14.9% lower than the January 2025 figure. This index has been declining for 7 consecutive months against the background of falling prices for cheese and butter due to seasonal increases in supply and significant stocks in the US and the EU.

 

The average value of the FAO Sugar Price Index fell by 1% to 89.8 points, which is 19.2% lower than the January 2025 figure. Prices are pressured by forecasts of increased global stocks and production in India and Thailand.

 

Unlike other commodity groups, most of the prices used to determine the Meat Price Index were not known at the time of calculations, so it is derived based on a combination of forecast and actual prices, which may lead to index adjustments.