FAO: Global food prices are declining

Global food commodity prices fell in January, thanks to a sharp decline in the prices of sugar and vegetable oils, according to the FAO FAO.

The average of the FAO index, which follows monthly the prices of the most traded food commodities in the world, reached 124.9 points in January, compared to 127 points in December.

Despite the monthly decrease, the index remained 6.2 percent above its level a year ago, but it is still 22 percent less than its peak that it reached in March 2022.

Sugar prices fell 6.8 percent on a monthly basis and 18.5 percent year on an annual basis. This decrease is largely due to the improvement of the global supply expectations of factors, including the appropriate weather in Brazil and India, which have resumed sugar exports.

And the prices of vegetable oils fell 5.6 percent last month, with the prices of palm oil and the global turnout oil decreased while the prices of soy oil and sunflower oil remained stable. Despite the decrease in January, the index remained 24.9 percent on an annual basis. Meat prices also fell 1.7 percent last month.

On the contrary, the grain prices witnessed a slight increase by 0.3 percent from December, but it remained 6.9 percent less than January 2024.

While wheat export prices fell slightly, corn prices rose due to the low expectations for production and stock in the United States. Rice prices fell 4.7 percent, reflecting the abundance of supplies for export.

Dairy products rose 2.4 percent on a monthly basis, and 20.4 percent on an annual basis driven by a monthly increase in cheese prices, which dispelled decreases in butter prices and milk powder. (Sky News)