Food and Agriculture Organization (FAO) World Food Price Index down0.8%

According to the United Nations Food and Agriculture Organization (FAO), the World Food Price Index in January 2023 recorded 131.2 points, down 0.8% from the previous month (132.2 points). Grain prices rose slightly, but prices fell for all other items.

In January 2023, the grain price index recorded 147.4 points, up 0.1% from 147.3 points in December 2022. Wheat fell in price as production increased compared to expectations in Australia and Russia.Corn prices rose due to strong demand for Brazilian corn and concerns over drought in Argentina, despite the decline in U.S. corn export prices.Rice prices rose on the back of rising domestic demand and the exchange rate in some Asian exporters.

In the case of oil and fat prices, it was 140.4 points, down 2.9% from the previous month (144.6 points). Palm oil prices fell as demand for imports slowed as major importers recently secured large inventories. Soybean oil prices fell due to falling prices of other oils and fats and improved climate conditions in Argentina. The prices of rape seed oil and sunflower seed oil fell as export volume was sufficiently supplied.

In the case of meat, it was 113.6 points, down 0.1% from the previous month (113.7 points). Beef prices fell, especially in Australia and New Zealand, as the supply of cattle for slaughter increased. Despite of the spreading avian influenza, the price of poultry meat fell as the exportable volume of major countries continued to increase. Pork was supplied sufficiently in Brazil and the United States, and China's demand for imports for the Spring Festival was lower than expected, causing prices to fall.

In the case of dairy products, it was 136.2 points, down 1.4% from the previous month (138.2 points). Butter market demand slowed as prices were expected to continue to fall, and prices fell as supply from Australia and New Zealand also increased. Dry whole milk fell in price due to weak demand from major importers and increased supply from New Zealand, and skimmed milk fell due to overall slowing demand. On the other hand, cheese prices rose slightly in Western Europe due to the recovery in demand for dining out and retailing because of the New Year holiday.

In the case of sugar, it was 115.8 points, down 1.1% from the previous month (117.2 points). The main factors were the smooth harvest in Thailand and the improvement in production conditions due to good climate effects in Brazil. However, the drop was not significant because of concerns over low yields in India, rising gasoline prices in Brazil, increased demand for ethanol, and a strong Brazilian real currency.