June 17, 2025 | 08:47 GMT +7

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Sunday- 14:35, 09/02/2025

World food commodity prices fall in Jan

(VAN) Decline fueled by lower prices of sugar and vegetable oils.
Vegetable oil prices declined 5.6% last month, as global palm and rapeseed oil prices dropped while soy and sunflower oil quotations remained stable.

Vegetable oil prices declined 5.6% last month, as global palm and rapeseed oil prices dropped while soy and sunflower oil quotations remained stable.

Global food commodity prices fell in January, led by sharp declines in sugar and vegetable oils, the Food and Agriculture Organisation (FAO) said on Friday.

The FAO Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 124.9 points in January against 127 in December. Despite the monthly decline, the index remained 6.2% higher than a year earlier but was still 22% below its March 2022 peak. Sugar prices fell 6.8% from the previous month and 18.5% on the year. The drop was largely attributed to improved global supply prospects, thanks in part to favourable weather in Brazil and India resuming sugar exports.

Vegetable oil prices declined 5.6% last month, as global palm and rapeseed oil prices dropped while soy and sunflower oil quotations remained stable. Despite the January fall, the index was still up 24.9% on the year. Meat prices also fell, shedding 1.7% in January. By contrast, cereal prices saw a slight uptick, climbing 0.3% from December, but remained 6.9% lower than in January 2024. While wheat export prices fell slightly, maize prices increased due to revised lower production and stock forecasts in the United States. Rice prices dropped 4.7%, reflecting ample export supplies.

Dairy prices rose 2.4% month-on-month and 20.4% year-on-year, led by a monthly surge in cheese quotations, which outweighed declines in butter and milk powder prices. International trade in cereals in 2024-25 is forecast to contract by 5.6% compared to the previous year to 483.5 million tonnes, largely due to lower demand from China for barley, maize and wheat.

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