ROME, ITALY — The benchmark for world food commodity prices declined in December compared to the previous month, the Food and Agriculture Organization of the United Nations (FAO) reported on Jan. 3. The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally traded food commodities, averaged 127.0 points in December, down 0.5% from November but up 6.7% from December 2023.

The FAO Cereal Price Index was relatively unchanged from November and 9.3% below its year-earlier level, as a marginal uptick in corn quotations offset a drop in those for wheat.  For the year, the Cereal Price Index averaged 113.5 points, down 13.3% from the 2023 level, marking a second straight decline from the 2022 record level.

Wheat export prices remained stable in December, as downward pressure from subdued international demand and higher seasonal availability from harvests in Argentina and Australia was balanced by upward pressure from poor winter crop conditions in Russia.

World corn prices edged slightly higher, supported by an uptick in export sales and tighter supplies in the United States, along with strong demand for Ukrainian origins. Among other coarse grains, world prices of barley increased, while those for sorghum decreased.

The FAO All Rice Price Index rose by 0.8% from its average 2023 level, representing a 16-year high in nominal terms.

For the year, the overall FPI stood at 122.0 points, 2.1% lower than the average value in 2023, offsetting significant decreases in quotations for cereals and sugar with smaller but not insignificant increases in prices for vegetable oils, dairy and meats.

Other highlights from the latest FPI report include:

  • The FAO Vegetable Oil Price Index in December declined by 0.5% from November, though still 33.5% higher than its year-earlier level. For the year, the index averaged 9.4% higher than in 2023 amid tightening global supplies
  • The FAO Meat Price Index, in contrast to other subindices, rose by 0.4% in December from November, ending a three-month declining trend, and stood 7.1% above its December 2023 value. For the year, the index was 2.7% above its 2023 average.
  • The FAO Dairy Price Index declined after seven consecutive months of increases, dipping by 0.7% from November although still 17% above its December 2023 value. For the year, the index averaged 4.7% higher than in 2023, due mainly to surging butter prices.
  • The FAO Sugar Price Index led the monthly decline, dipping by 5.1% from November amid improving sugar cane crop prospects in the main producing countries to stand 10.6% below its December 2023 level. In 2024, the index averaged 13.2% lower than for 2023.

More details are available here.