Index down again led by lower wheat and maize prices

The benchmark for world meals commodity costs fell additional in January, led by decreases within the costs for cereal and meat, says the Meals and Agriculture Group of the United Nations (FAO).

The FAO Meals Worth Index, which tracks month-to-month modifications within the worldwide costs of a set of worldwide traded meals commodities, averaged 118 factors in January, down 1% from December and 10.4% from January 2023.

The FAO Cereal Worth Index declines 2.2% from the earlier month.

International wheat export costs declined in January, largely as a consequence of robust competitors amongst exporters and the arrival of just lately harvested provides within the southern hemisphere international locations.

In the meantime, maize costs fell sharply, reflecting improved crop circumstances and the beginning of harvest in Argentina and bigger provides in the USA.

Against this, worth quotations for rise rose 1.2% in January, a mirrored image of robust export demand for Thai and Pakistani greater high quality Indica rice and extra purchases by Indonesia.

The FAO Vegetable Oil Worth Index rose marginally by 0.1% from December. Nonetheless, that is nonetheless 12.8% decrease than a 12 months earlier.

The FAO says this displays average will increase in worldwide palm and sunflower seed oil costs offsetting declines within the costs of soy and rapeseed oils.

World palm oil costs had been pushed by seasonally decrease manufacturing in main producing international locations and considerations over unfavourable climate circumstances in Malaysia.

On the identical time, elevated import demand barely pushed up sunflower seed oil costs.

Against this, worldwide soy and rapeseed oil costs declined as a consequence of prospects for giant provides from South America and lingering ample availability in Europe, respectively.

The FAO Dairy Worth Index remained nearly unchanged from its revised December worth, standing 17.8% under its worth a 12 months in the past.

In January, worldwide worth quotations for butter and entire milk powder elevated largely as a consequence of greater demand from Asian consumers, almost offsetting declines in these for skim milk powder and cheese.

For the seventh consecutive month, the FAO Meat Worth Index declined, this time by 1.4% on its December worth.

It’s because considerable provides from main export international locations drove down worldwide costs of poultry, bovine and pig meats.

Against this, worldwide ovine meat costs elevated on excessive world import demand and decrease provides of animals for slaughter in Oceania.

The FAO Sugar Worth Index in January was up by 0.8% from the earlier month, underpinned by considerations over the seemingly influence of below-average rains in Brazil on sugarcane crops to be harvested from April, coupled with unfavourable manufacturing prospects in Thailand and India.