World food prices fell in January 2025: Reuters reveals the reasons

Published Feb 7, 2025

Tridge summary

In January, world food prices experienced a decrease, with sugar and vegetable oils leading the decline. Sugar prices fell significantly due to an improved global supply outlook, while meat prices also saw a decrease. Cereal prices were slightly up but remained below January 2024 levels, with cereal production forecasts being revised down due to lower US corn production. Dairy prices rose, and the FAO expects global cereal use to increase slightly in 2024/25, although global cereal stocks are predicted to drop due to a drawdown in US maize stocks. International grain trade is anticipated to decline in 2024/25 due to reduced demand from China, and soil moisture levels in Ukraine, a key agricultural country, are at their lowest in seven seasons, raising concerns about the 2025 harvest.

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Original content

World food prices fell in January, driven by sharp declines in sugar and vegetable oils. Sugar prices fell 6.8% month-on-month and 18.5% year-on-year, Reuters reported. The decline was largely driven by an improving global supply outlook, including favorable weather in Brazil and a recovery in sugar exports from India. Vegetable oil prices fell 5.6% last month as global palm and rapeseed oil prices fell while soybean and sunflower oil prices remained stable. Meat prices also fell, falling 1.7% in January. Cereal prices, on the other hand, edged up 0.3% from December but remained 6.9% lower than in January 2024. While wheat export prices fell slightly, corn prices rose due to revised forecasts for lower production and inventories in the United States. Rice prices fell by 4.7%, reflecting ample export supplies. Dairy prices rose by 2.4% month-on-month and 20.4% year-on-year, driven by a monthly increase in cheese quotations that outweighed declines in butter and milk powder ...

Source: Unian