Global Food Prices Continue to Decline... Sugar Prices Rise Again

Published 03 Feb.2024 11:45(KST)

FAO Announces January Food Price Index... Grain and Meat Prices Decline

The Ministry of Agriculture, Food and Rural Affairs announced on the 3rd that the global food price index released by the United Nations Food and Agriculture Organization (FAO) last month fell by 1.0% from the previous month to 118.0.

[Image source=Yonhap News]

The global food price index showed a monthly decline from 124.6 in July last year to 118.0 last month. The FAO compiles and publishes the food price index monthly for five commodity groups: cereals, oils, meat, dairy products, and sugar. The index is based on the average prices from 2014 to 2016, set at 100 for comparison. By commodity group, the cereal price index was 120.1, down 2.2% from the previous month.

The decline in wheat prices was caused by ongoing price competition among exporting countries and the start of supply from wheat harvested in the Southern Hemisphere. Corn prices also fell due to improved crop conditions in Argentina and increased supply of U.S. corn. However, rice prices rose due to increased imports by Indonesia.

The meat price index was 109.8, down 1.4% from the previous month. Poultry prices fell due to a combination of decreased demand and increased supply. Pork prices declined as pork production increased in China, reducing imports, and sufficient supply was provided by some producing countries. Beef prices dropped due to increased exports from Oceania and South American countries.

On the other hand, the sugar price index rose 0.8% from the previous month to 135.3. Sugar prices surged significantly last year, reaching a price index of 162.7 in September, but fluctuated afterward, falling to 134.2 in December before rising again last month. The recent increase in sugar prices was influenced by poor production forecasts in Thailand and India.

However, sugar supply increased in Brazil due to reduced ethanol sales revenue, and the price rise was limited by the depreciation of the Brazilian real against the U.S. dollar.

Additionally, the oils price index was 122.5 and the dairy price index was 118.9, each rising 0.1% from the previous month.