FAO said that global cereal production was seen on track to an all-time high of over 2.83 billion tonnes last year, up 1.2 percent from 2022. The increases were attributed to strong growing conditions, expanded land use, and improved efficiency.

This allows the global cereal stocks ratio to climb to 31.1 percent for the 2023-24 growing season, up from 30.9 percent for 2022-23, providing downward pressure on prices.

FAO’s overall food price index was down one percent in January compared to December and it was 10.4 percent below levels from the same period of last year.

Prices for grains and cereals, the largest component in the index, declined by 2.2 percent.

Meanwhile, meat prices were 1.4 percent lower than the level in December thanks to strong output from major producers. Sugar prices rose 0.8 percent amid worries that heavy rain in Brazil, the world’s leading sugar producer, could cut production.

Despite higher demands from Asian markets, FAO said dairy prices remained almost unchanged compared to the previous month thanks to higher output elsewhere.

Prices for vegetable oils rose by a modest 0.1 percent, but remained 12.8 percent below levels from a year earlier, said FAO.