The FAO Food Price Index (FFPI) averaged 133.7 points in December 2021, down 1.2 points (0.9 percent) from November, but still up 25.1 points (23.1 percent) from December 2020. Except for dairy, the values of all sub-indices encompassed by the FFPI registered monthly declines, with international prices of vegetable oils and sugar falling significantly month-on-month. For 2021 as whole, the FFPI averaged 125.7 points, as much as 27.6 points (28.1 percent) above the previous year with all sub-indices averaging sharply higher than in the previous year.
The FAO Cereal Price Index averaged 140.5 points in December, down 0.9 points (0.6 percent) from November. Wheat export prices fell in December, amid improved supplies following harvests in the southern hemisphere and slowing demand. However, maize prices were firmer, underpinned by strong demand and concerns over persistent dryness in Brazil. For 2021 as a whole, the FAO Cereal Price Index averaged 131.2 points, up 28.0 points (27.2 percent) from 2020 and the highest annual average registered since 2012. In 2021, maize and wheat prices were 44.1 and 31.3 percent higher than their respective 2020 averages, mostly on strong demand and tighter supplies, especially among major wheat exporters. Rice was the sole major cereal to register a decline in prices in 2021, with quotations falling on average 4.0 percent below 2020 levels.
The FAO Vegetable Oil Price Index averaged 178.5 points in December, shedding 6.1 points (or 3.3 percent) from recent record highs. The decline was driven by weakening palm and sunflower oil prices, while soy and rapeseed oil values remained virtually unchanged month-on-month. International palm oil prices fell in December, primarily reflecting subdued global import demand amid concerns over the impact of rising COVID-19 cases. For 2021 as a whole, the FAO Vegetable Oil Price Index averaged 164.8 points, up as much as 65.4 points (or 65.8 percent) from 2020 and marking an all-time annual high.
The FAO Dairy Price Index averaged 128.2 points in December, up 2.3 points (1.8 percent) from November and 19.0 points (17.4 percent) above its December 2020 value.
The FAO Sugar Price Index averaged 116.4 points in December, down 3.8 points (3.1 percent) from November and a five-month low. The December decline reflected concerns over the impact of the Omicron COVID-19 variant on global demand for sugar following the resumption of containment measures in many regions. The weakening of the Brazilian Real against the US dollar and lower ethanol prices also contributed to lowering world sugar prices in December. For the year as a whole, the FAO Sugar Price Index averaged 109.3 points, up 29.8 points (or 37.5 percent) from 2020 and the highest since 2016.
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