The latest FAO Food Price Index was released on January 9, citing a slight drop from December. At 203.4 points, the Index was 4.4 percent lower than its January 2013 level.

The Cereal Price Index also dropped by 3 points in January, down a full 56 points from its January 2013 level. This decline can be attributed largely to bumper cereal crops and subsequent large export supplies, which helped reduce prices from the highs seen in 2012 and 2013.

The Vegetable Oil Price Index declined 7.4 points in January. While this drop is due mostly to a reduction in palm oil prices due to large supplies and slowing demand, anticipated record soybean crops from South America also contributed to the overall reduction in vegetable oil prices.

The Sugar and Meat Prices Indicies also fell in January, while the Dairy Price Index rose slightly.

The latest AMIS Market Monitor was also released last week. This report anticipates that 2014 global rice, maize, and wheat prices will be significantly lower than their 2013 levels. Wheat and maize production are both expected to increase in 2014, while soybean production is expected to reach record levels in the southern hemisphere.

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