The benchmark for world food commodity prices fell further in January, albeit slightly, led by decreases in the prices of cereals and meat, which more than offset an increase in the sugar prices, the Food and Agriculture Organisation of the United Nations (FAO) reported today.

 

The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 118 points in January, down 1% from December and 10.4% from its corresponding value a year ago.

 

The FAO Cereal Price Index declined by 2.2% from the previous month. 

 

Global wheat export prices declined in January driven by strong competition among exporters and the arrival of recently harvested supplies in the Southern Hemisphere countries, while those of maize fell sharply, reflecting improved crop conditions and the start of the harvest in Argentina and larger supplies in the US.

 

The FAO Meat Price Index declined for the seventh consecutive month by 1.4% from December, as abundant supplies from leading exporting countries drove down international prices.