Food prices fell to an almost 7-year low in January, according to the UN’s Food and Agriculture Organisation.

In January, the UN’s Food Price Index, which tracks the price of a range of staple foodstuffs around the world, slipped 1.9 percent below its December 2015 level, recording price drops in all food groups.

The FPI is now at its lowest level since April 2009, having fallen 16 percent from January 2015. Ample supplies of agricultural commodities are leading prices lower, as well as a slowing global economy and a weaker US dollar.

Sugar prices led the fall in December, though dairy prices also recorded large falls (-3% over the month) due to the continued oversupply in the EU and New Zealand, combined with lacklustre import demand around the world.

Cereal Prices declined 1.7 percent amid ample global supplies and increased competition for export markets, especially for wheat and maize.

Elsewhere, Vegetable Oil Prices dropped 1.7 percent on a decline in soy oil prices and the promise of healthy supplies. Meat Prices recorded a smaller fall (down 1.1%); prices of all meats fell, except for pigmeat, which was supported by the opening of storage aid in the EU.

2016 harvest uncertain, but stocks estimate rises

On Monday, the FAO also raised its forecast for world cereal stocks in 2016, though there are still concerns over EL Nino phenomenon. Weather patterns associated with El Niño are sending mixed signals about the early prospects for cereal crops in 2016, especially in the Southern Hemisphere.

In its Cereal Supply and Demand Brief, FAO said crop prospects in South Africa have been “severely weakened” and India has reduced wheat plantings in light of dry weather since October, though conditions for Russian and EU crops still appear favourable.

The boost to cereal stocks for the 2015 season, come as a result of higher output of wheat (Russia and Canada) and maize (Canada, China and Paraguay), and lower cereals usage estimates. This means that world cereal stocks are set to end the 2016 season higher than they began.