Declining world vegetable oil prices helped to lead world food commodity prices lower in January.
The Food and Agriculture Organization of the United Nations on Friday reported that its food price index averaged 124.9 points last month, down 1.6% from December. It marked the second straight month the index – which tracks monthly changes in the international prices of a set of globally-traded food commodities - has declined, following three consecutive increases.
Driven by lower world prices of palm and rapeseed oils, the FAO vegetable oil index fell 5.6% in January, although it remained almost 25% higher compared to the same month a year earlier.
After rising for seven consecutive months, international palm oil prices declined from multi-year highs, largely due to demand rationing, while rapeseed oil prices contracted moderately in early 2025, the FAO said. In contrast, soy and sunflower oil quotations stayed steady, with soyoil supported by concerns over unfavourable weather in parts of South America.
The sugar index also fell sharply in January, down 6.8% from December and 18.5% below its year-earlier level, mainly due to improved global supply prospects,
The cereal index was little changed month over month, rising just 0.3% from December and remaining almost 7% below last year. Wheat export prices dropped only slightly, the FAO said, while corn prices moved higher, in part due to a downgraded 2024 US production estimate. The rice index was down 4.7%, amid rising exportable supplies.
Meanwhile, the meat index dropped 1.4% in January as lower sheep, pork, and poultry prices outweighed a rise in beef. The dairy price index was up 2.4% from January and 20.4% above the January 2024 level.
The overall FAO food price index reached its all-time high in March 2022 at 159.3 points, following the Russian invasion of Ukraine.
