FAO reports stable food prices in July

Source: ©monticello via 123RF

The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally traded food commodities, averaged 120.8 points in July, marginally below its revised 121.0 figure for June. The index is now 3.1% lower than its corresponding value one year earlier.

The cereal price index declined by 3.8% from June as the global export prices of all major cereals decreased for the second consecutive month. Wheat quotations dipped on increasing seasonal availability from ongoing winter harvests in the northern hemisphere and generally favourable conditions in Canada and the United States of America supporting expectations for large spring wheat harvests later in the year.

Maize export prices declined as harvests in Argentina and Brazil progressed ahead of last year’s pace and crop conditions in the United States remained robust. The FAO All-Rice Price Index fell by 2.4% from June amid generally quiet trading activities for both Indica and Japonica varieties.

The vegetable oil price Index, by contrast, rose 2.4% from June to reach a one-and-a-half-year high. Global quotations for palm, soy, sunflower and rapeseed oils all rose, lifted by robust demand for soy oil from the biofuel sector and deteriorating crop prospects for sunflower and rapeseed oils in several major producing countries.

The meat price index increased by 1.2 % in July amid robust import demand for ovine, bovine and poultry meat, even as pig meat prices declined marginally due to an oversupply situation in Western Europe.

The sugar price index increased by 0.7% from June as lower-than-expected production in Brazil outweighed the impact of improved monsoon rainfall in India and conducive weather conditions in Thailand.

The dairy price index was unchanged in July, as decreases in the quotations for milk powders offset increases in those for butter and cheese.