January 16, 2023

FAO Cereal Price Index at record high in 2022 as average cereal prices rose

Cereal prices were 18% higher on average in 2022, pushing the average annual FAO Cereal Price Index to a new record high.

The index averaged 147.3 points in December, down 2.9 points (1.9%) from November, but still 6.8 points (4.8%) above its December 2021 value.

Wheat export prices fell in December, as ongoing harvests in the southern hemisphere boosted supplies and competition among exporters remained strong.

Global maize prices also eased month-on-month, mostly driven by strong competition from Brazil, although concerns over dryness in Argentina provided some support. Influenced by spillover from maize and wheat markets, global prices of both sorghum and barley also declined.

By contrast, purchases by Asian buyers and currency appreciations against the US dollar in some exporting countries kept international rice prices on the rise in December.

For 2022 as a whole, the index reached a new record high of 154.7 points, up 23.5 points (17.9% from 2021, surpassing by 12.5 points, or 8.8%, the previous annual average record registered in 2011).

Global prices of maize and wheat reached new record highs in 2022, averaging 24.8% and 15.6%, respectively, higher than their 2021 averages, while rice export prices were on average 2.9% above their 2021 levels.

The increase in the index in 2022 was due to a host of factors, including significant market disruptions, increased uncertainties, higher energy and input costs, adverse weather in a few key suppliers and continued strong global food demand.

- FAO