Global Food Price Index: Moderation Continues Amid Market Volatility

Key Trends in Food Commodity Prices

• Cereals: The cereal price index rose by 0.3% in the past month, reaching 111.7 points, though it remains 6.9% lower than in January 2024. Wheat export prices were largely stable, while corn prices increased due to seasonal supply shortages and adverse weather conditions in Argentina. Additionally, revised projections indicate lower corn production and stock levels in the U.S., further contributing to price pressures.

• Dairy Products: Dairy prices continued to rise, supported by strong international demand. The sector remains resilient despite broader price corrections in other food categories.

• Sugar, Vegetable Oils, and Meat: Prices in these three categories declined, contributing to the overall downward correction in the FAO Food Price Index. The easing of global demand and improved supply dynamics played a key role in these reductions.

Persistent Challenges in Global Food Markets

Despite the recent softening of the index, global food markets remain highly sensitive to external pressures. Key influencing factors include:

• Weather conditions affecting agricultural production, particularly in Latin America and the U.S.
• Shifting supply and demand dynamics, especially in staple commodities like wheat and corn.
• Geopolitical uncertainties that continue to disrupt trade flows and production planning.

As the new agricultural season approaches, FAO analysts are closely monitoring market developments, emphasizing that food price stability remains fragile and contingent on evolving economic and environmental conditions.