Major fall in global food prices for July, but future supply worries remain |

The United Nations agency has released its long-awaited updated food price index. This is a barometer that tracks monthly changes in international prices for his five groceries: grains, vegetable oils, dairy, meat and sugar.

The index averaged 140.9 points in July, down 8.6 points from June. The decline was attributed to a double-digit drop in the cost of grain as well as vegetable oil, in part due to recent UN-brokered deals on Ukraine’s grain exports.

welcome, but cautious

FAO Chief Economist Maximo Torello said: “The decline in food prices from very high levels is welcome, especially in terms of access to food.

“but, many uncertainties remainHigh fertilizer prices, a bleak global economic outlook, and currency movements that could affect future production prospects and farmers’ livelihoods all pose a serious strain on global food security. ”

The FAO vegetable price index fell 19.2% in July compared to June, hitting a 10-month low. International prices for all oil grades fell, the agency said, with prices of palm oil dropping, for example, on the prospect of full availability of exports from Indonesia.

In addition, sunflower oil prices have also fallen significantly as global import demand is subdued despite continued logistical uncertainties in the Black Sea region. Vegetable oil prices were also pushed down by lower crude oil prices.

Black Sea Export Agreement

The Grain Price Index also reflected last month’s 11.5% drop, but remained 16.6% higher than in July 2021. Prices for all grains in the index fell, led by wheat.

According to FAO, world wheat prices fell by 14.5%. This is partly due to a backlash to an agreement between Russia and Ukraine on grain exports from major ports in the Black Sea, and partly due to seasonal availability due to ongoing harvests in the northern hemisphere.

Coarse grain prices also fell 11.2% in July. Maize he fell 10.7%, also due to the Black Sea Grains Initiative and increased seasonal availability in Argentina and Brazil. International rice prices also fell for the first time this year.

sweet news

Sugar price index climbs 4% amid concerns over demand outlook due to further slowdown in global economy, weakening Brazilian currency, lower real and ethanol prices, resulting in more sugar production than previously expected It fell near.

The downtrend was also impacted by rising exports and signs of a favorable production outlook in India. Meanwhile, hot and dry weather in the European Union countries also raised concerns over sugar beet yields and prevented a sharp decline.

The FAO also reported that the dairy price index fell 2.5% “amid lackluster trading activity” but still averaged 25.4% above last July.

While milk powder and butter prices fell, cheese prices remained stable, boosted by demand in European tourist destinations.

meat mixture illustration

Meat prices also continued their downward trend, falling 0.5% from June due to weakening import demand. However, poultry prices have reached all-time highs due to strong import demand and a tight supply due to the avian flu outbreak in the northern hemisphere.

The FAO Meat Price Index also fell 0.5% in July from June due to weakening import demand for beef, sheep and pork meat. In contrast, international poultry prices have reached all-time highs, fueled by strong global import demand and tight supplies due to the bird flu outbreak in the northern hemisphere.

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