The UN agency issued its latest eagerly-awaited Food Price Index. This barometer follows monthly changes in the global prices of five food commodities, including cereals, vegetable oils, dairy products, meat, and sugar.
The index averaged 140.9 ends in July, or 8.6 points down from June. The plunge was led by double-digit percentage declines in the cost of vegetable oils and cereals, with the current UN deal on Ukrainian grain exports a contributing factor.
Maximo Torero, FAO Chief Economist, said that the decline in food commodity prices from very high levels is welcome, especially from a food access viewpoint.
In addition, Maximo Torero, FAO Chief Economist, said, “Nevertheless, many fates remain, including high prices fertilizers which will affect the coming production prospects and lives of farmers, global economic outlook, and currency movements, all of which pose severe strains for global food security.”
As compared to June, FAO’s Vegetable Price Index decreased by 19.2 per cent in July. The international quotations for all oil types fell. According to the agency, palm oil prices are dropping due to prospects of abundant export availability out of Indonesia,
In addition, sunflower oil prices dropped markedly amid suppressed global import demand, Despite continuous logistical fates in the Black Sea region. Values of vegetable oil were also pushed down by lower crude oil prices.
The prices of the Cereal Index represent around 11.5 per cent decline during last month, and the rest represents 16.6 per cent above July 2021.
Prices of world wheat have declined to 14.5 per cent, according to FAO’s reaction to the Russia-Ukraine deal on grain exports from critical Black Sea ports. Because of seasonal availability from ongoing harvests in the northern hemisphere.
In July, there was an 11.2 per cent decline in coarse grain prices. At the same time, the prices of maize have declined to 10.7per cent, due in part to the Black Sea Grain Initiative and increased seasonal availabilities in Argentina and Brazil. Additionally, international rice prices also fell for the first time this year.
