World Food Price Index Eases in Dec, Pushed Lower by Sugar

A vendor arranges vegetables at a roadside market on a cold winter evening in New Delhi on January 2, 2025. (Photo by Sajjad  HUSSAIN / AFP)
A vendor arranges vegetables at a roadside market on a cold winter evening in New Delhi on January 2, 2025. (Photo by Sajjad HUSSAIN / AFP)
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World Food Price Index Eases in Dec, Pushed Lower by Sugar

A vendor arranges vegetables at a roadside market on a cold winter evening in New Delhi on January 2, 2025. (Photo by Sajjad  HUSSAIN / AFP)
A vendor arranges vegetables at a roadside market on a cold winter evening in New Delhi on January 2, 2025. (Photo by Sajjad HUSSAIN / AFP)

The United Nations' world food price index dipped in December against November levels, led lower by a drop in international sugar quotations, but still showed a robust gain year-on-year, data showed on Friday.
The index, compiled by the UN Food and Agriculture Organization (FAO) to track the most globally traded food commodities, fell to 127.0 points last month from a slightly revised 127.6 in November.
The November figure was previously put at 127.5, Reuters reported.
The December value was up 6.7% from 12 months previously, yet remained 20.7% below the all-time high reached in March 2022, FAO said.
For 2024 as a whole, the index averaged 122.0, 2.1% lower than the 2023 value, offsetting significant decreases in quotations for cereals and sugar with smaller increases in prices for vegetable oils, dairy and meats.
Sugar prices led December's monthly decline, dropping 5.1% month-on-month thanks to improving sugarcane crop prospects in the main producing countries to stand 10.6% below its December 2023 level.
Dairy prices declined after seven consecutive months of increases, losing 0.7% from November but still posting a 17.0% gain year-on-year. Vegetable oil prices dropped 0.5% month-on-month, but were up 33.5% on their year-earlier level.
Meat prices rose 0.4% in December from November and stood 7.1% above their December 2023 value.
The FAO cereal price index was little changed last month from November and was 9.3% below its year-earlier level, as a slightly uptick in maize quotations offset a drop in those for wheat, FAO said.
FAO did not provide a new forecast for global cereal production, with the next estimate due next month.



Gold Hits Four-week Peak on Safe-haven Demand

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
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Gold Hits Four-week Peak on Safe-haven Demand

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk

Gold prices rose to a near four-week high on Thursday, supported by safe-haven demand, while investors weighed how US President-elect Donald Trump's policies would impact the economy and inflation.

Spot gold inched up 0.4% to $2,672.18 per ounce, as of 0918 a.m. ET (1418 GMT). US gold futures rose 0.7% to $2,691.80.

"Safe-haven demand is modestly supporting gold, offsetting downside pressure coming from a stronger dollar and higher rates," UBS analyst Giovanni Staunovo said.

The dollar index hovered near a one-week high, making gold less appealing for holders of other currencies, while the benchmark 10-year Treasury yield stayed near eight-month peaks, Reuters reported.

"Market uncertainty is likely to persist with the upcoming inauguration of Donald Trump as the next US president," Staunovo said.

Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries, CNN reported on Wednesday, citing sources familiar with the matter.

Trump will take office on Jan. 20 and his proposed tariffs could potentially ignite trade wars and inflation. In such a scenario, gold, considered a hedge against inflation, is likely to perform well.

Investors' focus now shifts to Friday's US nonfarm payrolls due at 08:30 a.m. ET for further clarity on the Federal Reserve's interest rate path.

Non-farm payrolls likely rose by 160,000 jobs in December after surging by 227,000 in November, a Reuters survey showed.

Gold hit a near four-week high on Wednesday after a weaker-than-expected US private employment report hinted that the Fed may be less cautious about easing rates this year.

However, minutes of the Fed's December policy meeting showed officials' concern that Trump's proposed tariffs and immigration policies may prolong the fight against rising prices.

High rates reduce the non-yielding asset's appeal.

The World Gold Council on Wednesday said physically-backed gold exchange-traded funds registered their first inflow in four years.

Spot silver rose 0.7% to $30.32 per ounce, platinum fell 0.8% to $948.55 and palladium shed 1.4% to $915.75.