Global food commodity prices edged lower again in January, as easing prices for several major food groups extended a months-long downward trend.
According to the latest monthly update from the Food and Agriculture Organization (FAO) of the United Nations on Friday, the FAO Food Price Index averaged 123.9 points in January, down 0.4% from December and marking its fifth consecutive monthly decline. The index now sits 0.6% below year-earlier levels, reflecting generally ample global supplies despite pockets of weather and geopolitical uncertainty, the FAO said.
Cereal prices were broadly steady, with mixed signals across major grains. The FAO Cereal Price Index averaged 107.5 points in January, up a marginal 0.2% from a month earlier but nearly 4% lower than a year ago.
Global wheat prices were largely unchanged, slipping just 0.4% month over month. Strong export activity from Australia and Canada, combined with weather concerns affecting dormant crops in Russia and the U.S., provided some support. However, those factors were offset by comfortable global supplies, high stock levels and expectations for solid harvests in Argentina and Australia.
International corn prices continued to drift lower, easing 0.2%, as ample global availability outweighed weather worries in South America and firm U.S. ethanol demand. Among other coarse grains, barley prices edged higher on strong demand for Argentine supplies, while sorghum followed wheat slightly lower. In contrast, global rice prices rose 1.8%, driven by firmer demand.
Vegetable oil prices moved decisively higher. The FAO Vegetable Oil Price Index climbed 2.1% to 168.6 points, standing more than 10% above year-earlier levels.
Palm oil prices rose for a second straight month amid seasonal production slowdowns in Southeast Asia and strong import demand. Soyoil prices rebounded as export availability tightened in South America and expectations grew for sustained biofuel demand in the U.S.
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