952. January 2024 World Food Price Index

On February 2, the Food and Agriculture Organization of the United Nations (FAO) released its World Food Price Index, which averaged 118.0 in January 2024, down 1.2 points (1.0%) from the previous month, reflecting lower cereal and meat prices, which offset higher sugar prices. The Price Index was 13.7 points (10.4%) lower than a year earlier.

The Cereals Price Index was 120.1 in January, down 2.2% from the previous month and down 18.6% from a year earlier. Wheat export prices fell due to competition among exporting countries and supplies from the southern hemisphere. World corn prices fell sharply on improved production prospects due to favorable production in Argentina and increased supplies from the United States. In contrast, rice prices rose 1.2%, reflecting the pace of shipments from Thailand and Pakistan and additional purchases from Indonesia.

The Vegetable Oil Price Index increased slightly by 0.1% from the previous month, but remained 12.8% below a year ago. Strong prices for palm oil and sunflower oil offset declines for soybean and rapeseed oil. Palm oil prices increased slightly due to seasonal supply reductions in major producing countries and unfavorable weather in Malaysia. Sunflower oil prices increased slightly during the period due to import demand from Turkey. In contrast, international soybean and rapeseed oil prices declined, reflecting the prospect of large supplies from South America and a supply glut in Europe.

Sugar prices in December were 0.8% higher than in the previous month and 15.9% higher than a year earlier. This was due to a deteriorating production outlook as a result of delays in new plantings in Thailand and India, as well as concerns about the impact of low rainfall in Brazil on the crop from April. On the other hand, high supplies from the recently completed Brazilian harvest and low returns from ethanol sales, together with the depreciation of the Brazilian currency against the U.S. dollar, limited upward pressure on prices.

Contributor: IIYAMA Miyuki (Information Program)