Food prices fell significantly in July, marking the fifth consecutive monthly decline since hitting record highs earlier in the year following the war in Ukraine, the Food and Agriculture Organization (FAO) reported on Friday.
The UN agency has published its eagerly awaited latest Food Price Index, the barometer that tracks monthly changes in the international prices of five food commodities: cereals, vegetable oils, dairy products, meat and sugar.
The @FAO Food Price Index averaged 140.9 points in July, 🔻8.6% from June, marking the 4th consecutive monthly decline.
Major corn & vegetable oil prices recorded a double-digit percentage decline.
The Index remained 13.1% higher than in July 2021.
👉 https://t.co/YW5pp7MWEg pic.twitter.com/m3IZaJQntg
The index averaged 140.9 points in July, or 8.6 points down from June. The decline was also driven by double-digit percentage declines in the cost of vegetable oils and grain, and was a contributing factor to the recent UN deal on grain exports from Ukraine.
Welcome but wary
“The reduction in food commodity prices from very high levels is welcome, especially when seen from the perspective of access to food,” said Maximo Torero, FAO Chief Economist. On the same subject : General information: Artist welcome, outdoor film screenings and summer shows.
“However, many uncertainties remain, including high fertilizer prices that could impact future production prospects and farmers’ livelihoods, a bleak global economic outlook, and currency movements, while while creating serious pressures on global food security.”
In July, the EBT’s Vegetable Price Index fell by 19.2 percent compared to June, marking a 10-month low. International quotations for all types of oil fell, the agency said, with palm oil prices falling due to expectations of ample export availability from Indonesia, for example.
In addition, sunflower oil prices fell significantly amid reduced global import demand, despite ongoing logistical uncertainties in the Black Sea region. Lower crude oil prices also pressured vegetable oil values.
Black Sea export deal
The Cereal Price Index also showed a decrease of 11.5 percent last month, although it was still 16.6 percent above July 2021. Prices of all cereals in the index decreased, led by wheat.
World wheat prices fell by as much as 14. See the article : Global food prices may be falling, but an economist warns that food prices in Asia could rise further.5 percent, the EBT said, partly in response to the Russia-Ukraine deal on grain exports from key Black Sea ports, and also due to seasonal availability from ongoing harvests in the northern hemisphere.
Also in July there was a decrease of 11.2 percent in grain prices. Maize was down 10.7 percent, again due in part to the Black Sea Grain Initiative and increased seasonal availability in Argentina and Brazil. In addition, international rice prices also declined for the first time this year.
The Sugar Price Index fell nearly four percent, amid concerns about demand prospects due to expectations of further global economic slowdown, the weakening of the Brazilian currency, the real price of ethanol, and lower ethanol prices as a result of greater sugar production there than previously thought. This may interest you : The US strongly condemns the Russian missile attack on Odessa.
The downward trend was also influenced by higher export indicators and favorable production prospects in India. Meanwhile, the hot and dry weather in European Union countries also raised concerns about sugar beet yields and prevented sharper declines.
The EBT also reported that the Dairy Price Index fell by 2.5 per cent “amid light trading activity, but still averaged 25.4 per cent over last July.
While milk powder and butter prices fell, cheese prices remained stable, boosted by demand in European tourist destinations.
Mixed picture for meat
Meat prices also continued their downward trend, falling half a percent since June due to weakened import demands. However, poultry prices reached an all-time high, as import demand was tight and supplies tight due to bird flu outbreaks in the northern hemisphere.
The EBT Meat Price Index was also down in July, 0.5 per cent from June, due to weakened import demand for beef, sheep and pork. In contrast, international poultry meat prices reached record highs, supported by firm global import demand and tight supplies due to bird flu outbreaks in the northern hemisphere.