According to the Food and Agriculture Organization of the United Nations (FAO), the global food price index in January 2026 shows a decline that has been ongoing for five consecutive months.
The main reason for this drop has been the decrease in prices for dairy products, sugar, and meat.
Cereals
Despite a slight decrease in prices for wheat and corn, the FAO cereal index still increased by 0.2%. The situation with large wheat stocks helped to offset weather risks in Russia and the USA, while corn was supported by high demand for ethanol in the USA and favorable harvest forecasts for Argentina and Brazil. The rice price index rose by 1.8%.
Vegetable Oils
The price index for vegetable oils increased by 2.1%. The rise in palm oil prices is linked to seasonal production declines in Southeast Asia and steady import demand. Soybean oil also became more expensive due to reduced export supplies from South America and expectations of high demand for biofuels in the USA.
Sunflower oil also became more expensive, driven by limited supply in the Black Sea region. At the same time, the price of rapeseed oil decreased due to significant import volumes into the European Union.
Meat
The meat price index fell by 0.4%. The price decrease was due to low pork prices, which are associated with large global supplies and weak demand. At the same time, poultry prices increased, mainly due to rising prices in Brazil, where high export demand persists.
Beef and lamb prices remained stable, as increased supplies from Brazil to China compensated for the rapid filling of the duty-free quota from the USA.
Dairy Products
The dairy price index decreased by 5%. The largest declines were seen in cheese and butter, which is related to sufficient supply volumes. At the same time, the price of skimmed milk powder increased due to recovering demand from countries in the Middle East, North Africa, and certain regions of Asia.
Sugar
Sugar prices fell by 1%. The FAO attributes this to expectations of increased global supply in the current season, explained by the recovery of production in India, favorable forecasts for Thailand, and positive dynamics in Brazil.
Grain Production Forecast
The FAO also presented an updated forecast for global grain production. The total volume is expected to reach 3.023 billion tons, which would be a record figure.
The upward revision of the forecast is due to higher-than-expected wheat yields in Argentina, Canada, and the EU, as well as increased corn plantings and rising yields in China and the USA. Rice production is also expected to increase, mainly in India, Bangladesh, Brazil, China, and Indonesia.
