FAO Dec Food Price Index falls 0.5% on month as most indices down
This story was originally published at 18:51 IST on 3 January 2025
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NEW DELHI – The UN Food and Agriculture Organization's Food Price Index fell 0.5% on month to 127.0 points in December as declining prices of sugar, dairy products, vegetable oils, and cereals offset increases in meat, the organisation said in a report. The Food Price Index in December was 6.7% higher than a year ago, but 20.7% below its peak of 160.2 points touched in March 2022, the report said.
The cereal price index averaged 111.3 points in December, largely unchanged on month ago, but down 9.3% on year. Wheat export prices remained largely stable as subdued international demand and higher seasonal availability from Argentina and Australia were balanced by poor winter crop in the Russian Federation, the report said.
Global maize prices edged a tad higher in December amid higher exports, tight supplies in the US, and strong demand for Ukrainian origins. Among other coarse grains, prices of barley increased, while those for sorghum decreased, it said.
The FAO All Rice Price Index declined by 1.2% on month in December due to lower quotations of Indica and fragrant rice driven by a slowdown in demand, the report said. The Vegetable Oil Price Index fell 0.5% on month to 163.3 points in December as lower soy, rapeseed, and sunflower oil prices more than offset slightly higher palm oil prices. However, the index is 33.5% up on year, the report said.
After seven months of increases, the dairy price index fell 0.7% on month to 138.9 points in December due to lower butter prices, the organisation said. In the dairy basket, butter prices marked the largest decline, ending a fourteen-month streak of consecutive increases amid subdued global demand and accumulated stocks, it added.
However, international whole milk powder prices surged, stemming from solid global demand, especially in Asia. Tighter inventories in Western Europe due to seasonally low milk production also drove prices higher.
The Meat Price Index was at 119.0 points in December, up 0.4% on month, marking a rebound after three months of consecutive declines. On year, the index was 7.1% higher. The increase was due to strong global demand coupled with production constraints due to routine year-end maintenance shutdowns at processing plants in major exporting countries, it said.
Meanwhile, pig meat prices declined, underpinned by weaker-than-expected consumer demand in the European Union ahead of the winter holidays. Poultry meat prices also fell slightly due to ample export supplies from Brazil.
The Sugar Price Index averaged 120.0 points in December, down 5.1% on month, marking the second consecutive decline. Sugar prices fell amid larger-than-expected production in Brazil and the weakening of the Brazilian real against the US dollar, the report said. The ongoing crushing season in India and Thailand also pressured prices. End
Reported by Afra Abubacker
Edited by Saji George Titus
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