• FAO's cereal production forecast for last year revised up to 3.023B tons

ISTANBUL

The UN Food and Agriculture Organization (FAO) reported on Friday that global food prices fell 0.4% in January due to declines in dairy, sugar, and meat prices.

The organization's food price index, which tracks monthly changes in the international prices of a select group of globally traded food commodities, fell to 123.9 points last month.

This was the index's fifth consecutive monthly decline, according to the data.

The vegetable oil price index rose 2.1%, driven by a seasonal slowdown in Southeast Asia and increased demand for biofuels.

The cereal price index showed a limited increase of 0.2%, despite a 1.8% jump in rice prices, thanks to an abundant supply of wheat and maize.

On the other hand, the sugar price index declined 1%, driven by a production recovery in India and positive expectations in Thailand.

The dairy price index decreased by 5% compared to December, primarily due to an oversupply of cheese and butter.

The meat price index also fell 0.4% due to slowing global demand and increased pork supply.

Upward revision in cereal production

The global cereal production forecast for 2025 has been revised upward to 3.023 billion tons, according to the FAO.

It stated that increased wheat yields in Argentina, Canada, and the European Union, as well as increased corn planting areas in China and the US, contributed to this rise.

FAO also predicted that the global stock-to-use ratio would reach 31.8%, the highest level since 2001.