February 13, 2023

FAO Cereal Price Index increased 4.8% in January

The FAO Cereal Price Index averaged 147.4 points in January, up fractionally (0.1%) from December and 6.7 points (4.8%) above its level one year ago.

Among the major cereals, global prices of rice and maize rose, while those of barley and wheat fell in January. International rice prices increased by 6.2% month-on-month, influenced by tighter availabilities, a strong local demand in some Asian exporting countries and exchange rate movements.

Global maize prices also increased, albeit marginally (0.5%), mostly influenced by a strong demand for exports from Brazil and concerns over dry conditions in Argentina, offsetting a downward trend in US export prices amidst slow sales.

Among other coarse grains, global prices of sorghum increased slightly (0.9%), mainly influenced by the strength in maize markets and lower production in the United States, the top global exporter, while the decline in barley prices (1.0%) reflected spillover from the global wheat market.

Meanwhile, international wheat prices fell for a third consecutive month in January, by 2.5%, as global supplies increased with larger than previously estimated production in Australia and the Russian Federation.

- FAO.