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The FAO Food Price Index continued to decline in December, but rose significantly year-on-year.
The FAO food price index averaged 132.4 points in December 2022, down by 2.6 points (1.9%) from its level recorded in November, thus witnessing the ninth consecutive monthly decline and recording a value less than 1.3 points (1.0). percent from its value recorded a year ago.
The decrease in the index value in December was attributed to a sharp drop in the international prices of vegetable oils, as well as some declines in the prices of cereals and meat, but it was partially offset by moderate increases in the prices of sugar and dairy products.
However, for 2022 as a whole, the FAO Food Price Index averaged 143.7 points, which represents an increase of 18 points or 14.3% compared to 2021.
grain prices
The FAO Cereal Price Index averaged 147.3 points in December, down 2.9 points (1.9 percent) from its level in November, but still 6.8 points (4.8 percent) higher than its value in December. The first is 2021.
Wheat export prices fell in December, as ongoing seasons in the southern hemisphere boosted supplies and competition among exporters remained strong. International maize prices also fell on a monthly basis, mostly due to strong competition from Brazil, although concerns about drought in Argentina provided some support. International prices of sorghum and barley also declined due to the effects of the maize and wheat markets.
In contrast, purchases by buyers in Asia and currency appreciation against the US dollar in some exporting countries kept global rice prices higher in December.
For 2022 as a whole, the FAO Cereal Price Index reached a new record high of 154.7 points, up 23.5 points (17.9%) from 2021 and exceeding the previous record annual average in 2011 by 12.5 points (8.8%). World prices of maize and wheat reached new records in 2022, averaging 24.8 and 15.6% higher, respectively, than the average recorded in 2021, while export prices of rice exceeded their levels in 2021 by an average of 2.9%.
The increase in the FAO Cereal Price Index in 2022 is due to a combination of factors that include significant market disruptions, growing uncertainties, higher energy and input costs, adverse weather conditions in a few major suppliers, and continued strong global demand for food.
Vegetable oils
The FAO Vegetable Oil Price Index averaged 144.4 points in December, down 10.3 points (6.7%) from November and reaching its lowest level since February 2021. The decline in the index in December led to lower international prices for palm, soybean, rapeseed and sunflower seeds. International palm oil prices declined by around 5% after a short-lived recovery in the previous month, mainly supported by sluggish global import demand despite the decline in production in major palm oil producing countries due to heavy rains.
At the same time, global soybean oil prices declined significantly, largely due to positive expectations of increased seasonal production in South America.
As for rapeseed oils and sunflower seed oils, international prices fell respectively due to ample global supplies and lower import demand, particularly from the European Union. The decline in crude mineral oil prices also put pressure on the international prices of vegetable oils to follow a downward curve. For 2022 as a whole, the FAO Vegetable Oil Price Index averaged 187.8 points, up 22.9 points (13.9%) compared to 2021, and hitting a new annual record high.
dairy prices
Likewise, the FAO Dairy Price Index averaged 139.1 points in December, up 1.5 points (1.1%) from its level in November, up after five months of consecutive declines and more than a year earlier. 10.1 points (7.9%).
In December, international prices of cheese rose, mainly reflecting strong global import demand and somewhat diminished export opportunities amid rising domestic retail and service sector sales, particularly in Western Europe. In contrast, international butter prices declined for the sixth month in a row, supported by continued sluggish global import demand and the availability of sufficient domestic stocks to cover needs in the near term.
Meanwhile, international milk powder prices declined slightly, as price declines in Western Europe, mainly driven by slower demand for spot supplies, outweighed increases in supply quotations from Oceania, primarily reflecting active purchases from Southeast Asia. and currency movements. For 2022 as a whole, the FAO Dairy Price Index averaged 142.5 points, representing an increase of 23.3 points (19.6%) compared to 2021, and the highest annual average ever since 1990.
meat prices
The FAO Meat Price Index averaged 113.8 points in December, down 1.4 points (1.2%) from its level in November, marking the sixth consecutive monthly decline, but still higher than
