August 7, 2017

Global cereal, dairy price indices rise in July; meat steady

Global prices of cereal and dairy commodities, besides that of sugar, rose in July, driving the food price index for that month to increase for the third consecutive month, the Food and Agriculture Organisation said.

The FAO Food Price Index-a monthly trade-weighted index tracking international market prices of five major food commodity groups-averaged 179.1 points in July, its highest value since January 2015. It marked a 2.3% increase from June and 10.2% rise from its level a year earlier.

The cereal price index was up 5.1% in July compared with the previous month. It had been rising consistently over the three preceeding months, supported by firmer wheat and rice quotations. Wheat values rose the most in July, as continued hot and dry weather conditions hampered spring wheat crops in North America. On the other hand, maize prices remained largely steady.

The dairy price index gained 3.6% in July, underpinned by stronger prices of butter, cheese and whole milk powder (WMP).  Tighter export availabilities pushed butter prices to a new high in July, widening further the spread between butter quotations and other dairy products.

The meat price index remained steady. An increase in international prices for ovine (sheep) meat in July was offset by downward price movements in bovine, pig and poultry sectors.

The other FAO price indices were for vegetable oil, which fell 1.1% from June, and sugar, which rose by 5.2%.

Butter and a variety of fats and cheeses for sale at a city market in Ulaanbaatar, Mongolia. Tighter export availabilities pushed butter prices to a new high in July.  Photo: ©FAO/Shah Marai