ROME, ITALY — Although grain prices have declined sharply since the beginning of the year, the Food and Agriculture Organization (FAO) of the United Nations’ Cereal Price Index for December reflected a 1.5% increase from the previous month as wheat, corn, rice and barley prices all rose, partly reflecting logistical disruptions that hindered shipments from major exporting countries.

However, for the year, the index was 15.4% below the 2022 average, reflecting well supplied global markets, although FAO’s All Rice Price Index (part of the FAO Cereal Price Index) registered a 21% increase, largely owing to concerns about the impact of El Niño on rice production and export restrictions imposed by India.

The report, which was released Jan. 5, noted that after falling for four consecutive months, wheat export prices increased in December, supported by weather-related logistical disruptions in some major exporters and tensions in the Black Sea amidst solid demand. World corn prices also strengthened in December, underpinned by concerns about Brazil’s second crop plantings, and logistical constraints hindering shipments from Ukraine. Among other coarse grains, world prices of barley increased, while sorghum prices decreased slightly. 

In December, the FAO All Rice Price Index rose 1.6% above its November level. Indica quotations underpinned this increase, rising in response to purchases by some Asian buyers and reduced competition among exporters due to India’s export restrictions and tight availabilities in Vietnam.

Wheat, corn and soybean prices have plummeted since the start of 2024 due to strengthening of the US dollar and improved weather conditions in Brazil and the central United States.