• FAO food price index slips 0.4% in January to 123.9 points
• Sugar, dairy, and meat prices decline, offsetting gains in oils and cereals
• Strong global grain supply expected to limit price pressures

Global food prices started 2026 on a softer note, extending their downward trend for a fifth consecutive month, according to the Food and Agriculture Organization of the United Nations.

In a statement released on Friday, February 6, the FAO said its global food price index, which tracks international prices of major commodities, averaged 123.9 points in January, down 0.4% from December.

The decline reflects lower prices for sugar, dairy products, and meat, whose indices fell by 1%, 5%, and 0.4%, respectively, compared with December. These decreases offset price increases recorded for other commodities.

The vegetable oil price index averaged 168.6 points in January, marking a monthly increase of 2.1% and standing 10.2% higher than a year earlier. The rise was driven mainly by higher prices for soybean, sunflower, and palm oil. Palm oil prices posted a second consecutive monthly increase, supported by seasonal production slowdowns in Southeast Asia and strong import demand linked to improved price competitiveness.

Cereal prices rose more moderately, increasing 0.2% from December. Wheat prices were broadly stable in January, while maize prices declined as ample global supplies outweighed the effects of strong demand, particularly for ethanol production in the United States, as well as climate-related uncertainties in Brazil and Argentina.

The January decline follows a year in which global food prices increased overall in 2025, ending two consecutive years of declines. The FAO said prospects remain favorable for cereals, with global production expected to reach 3.02 billion tons in 2025, supported by record volumes of wheat, maize, and rice. The global cereal stocks-to-use ratio is also projected to reach its highest level since 2001, a situation expected to limit the risk of shortages and sharp price spikes on international markets.

Espoir Olodo