Global food prices fall for fifth consecutive month, FAO says

Global food prices fell for the fifth consecutive month in January, while global grain stocks approached a historic high, the United Nations Food and Agriculture Organization (FAO) said on Monday.

The FAO Food Price Index, which tracks monthly changes in international prices of a basket of key food commodities, averaged 123.9 points in January, down 0.4% from December and 0.6% from a year earlier, CE Report quotes MIA.

Cereal prices rose by 0.2% compared to the previous month, despite slight declines in wheat and maize prices.

High wheat stock levels offset concerns about weather conditions in Russia and the United States, while solid global maize inventories eased the impact of adverse weather in Argentina and Brazil as well as strong demand for ethanol in the United States.

The vegetable oil price index increased by 2.1% in January. Palm oil prices rose due to seasonal production slowdowns in Southeast Asia and steady global demand, while soybean oil prices strengthened because of reduced supplies from South America and expectations of strong demand from the U.S. biofuels sector.

Meat prices fell by 0.4% in January, mainly due to lower pork prices amid ample global supply and weaker international demand. The largest drop was recorded in dairy products, whose index fell by 5% from December because of lower cheese and butter prices.

The sugar price index declined by 1% due to expected increases in supply, particularly from a recovery in production in India and favorable prospects in Brazil and Thailand.

Based on updated forecasts, global grain stocks could rise by 7.8% and reach a record level, the FAO report added.