The FAO Food Price Index rose notably in January, led by sugar and cereals, even as global markets remain well supplied.
The FAO Food Price Index averaged 173.8 percent in January, its highest value in almost two years, marking a 2.1 percent increase from its revised December value and 16.4 percent above its 2016 January level.
The FAO Sugar Price Index surged 9.9 percent in the month, driven by expectations of protracted supply tightness in Brazil, India and Thailand.
The FAO Cereal Price Index rose 3.4 percent from December to a six-month high, with wheat, maize and rice values all increasing. Wheat markets reacted to unfavourable weather conditions hampering this season’s crops as well as reduced plantings in the United States of America, while higher maize prices mostly reflected strong demand and uncertain crop prospects across South America. International prices of rice also rose, in part due to India’s ongoing state procurement programme, reducing the quantities available for export. See more