STAT Communications Ag Market News

World Food Prices Slip in December

ROME - Jan 11/18 - SNS -- World food prices declined in December, with the FAO Food Price Index dropping 3.3% in December to 169.8, down 3.3% from November.

Even so, 2017 ended with the food price index averaging 174.6 points, up 8.2% from 2016 and the highest annual average since 2014.

The FAO Cereal Price Index remained broadly stable for the third consecutive month, with international wheat prices weakening while those of maize and rice firming up. The Index was 3.2% higher over 2017 than in 2016, while still 37% below its 2011 peak.

The FAO Vegetable Oil Price Index declined by 5.6% from November, as palm oil prices tumbled amid swelling stocks in Malaysia and Indonesia. That in turn pressured down soy oil quotations. Over 2017, the subindex ran 3% higher than the prior year.

STAT's world pulse price index averaged 143.5 points in December, down 30% from last year and down 5% from the November average. The average for the 2017 calendar year was 175.1, down 17.2% from the 2016 average. The drop reflected the impact of large crops relative to overall demand. India's imposition of import duties at the end of the year on peas, lentils and chickpeas resulted in lower average prices in the last quarter.

The FAO Dairy Price Index declined 9.7% in December, with high export supplies and subdued demand weighing on the international prices of skim and whole milk powders as well as cheese and butter. Still, the subindex was 31.5% higher over the whole of 2017 than the previous year.

The FAO Sugar Price Index also declined, marking a 4.1% drop from November due to seasonal factors and expectations of a large surplus in the year ahead. Sugar prices were 11.2% lower, on average, in 2017 than in 2016, due largely to a bumper harvest in Brazil, the world's leading producer.

The FAO Meat Price Index slipped slightly in December, with strong supply pressuring international prices for bovine meat down. For the year, the subindex registered a 9% increase from its 2016 level.

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