Wahyu Dwi Anggoro
IDXChannel - The benchmark for world food commodity prices declined in December 2023, compared to the previous month, according to latest data from the Food and Agriculture Organization (FAO) of the United Nations (UN).
The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 118.5 points in December 2023, down 1.5 percent from November 2023 and down 10.1 percent from December 2022.
For 2023 as a whole, the index was 13.7 percent lower than the average value over the preceding year, with only the international sugar price index higher over the period.
The FAO Cereal Price Index increased 1.5 percent from November 2023, as wheat, maize, rice, and barley prices all rose, partly reflecting logistical disruptions that hindered shipments from major exporting countries. For the year as a whole, the index was 15.4 percent below the 2022 average, reflecting well supplied global markets, although FAO’s All Rice Price Index (part of the FAO Cereal Price Index) registered a 21 percent increase, largely owing to concerns about the impact of El Nino on rice production and in the aftermath of export restrictions imposed by India.
The FAO Vegetable Oil Price Index by contrast, declined by 1.4 percent from November 2023, reflecting subdued purchases of palm, soy, rapeseed, and sunflower seed oil, with soy oil in particular impacted by a slowdown in demand from the biodiesel sector as well as improving weather conditions in major growing areas of Brazil. For 2023 as a whole, this index was 32.7 percent below the previous year’s level.
