August 7, 2024

UN world food price index declines slightly in July

The United Nations' world food price index showed a slight decrease in July, according to data released on August 2, 2024, Reuters reported.

The decline in cereal prices was partly offset by increases in the prices of meat, vegetable oils, and sugar.

The UN Food and Agriculture Organisation's (FAO) price index, which tracks the most globally traded food commodities, averaged 120.8 points in July, down from 121 in June. The June reading was revised from an initial figure of 120.6.

The FAO Cereals Price Index fell by 3.8%, reaching its lowest level in nearly four years. This decrease was driven by falling global export prices for all major cereals for the second consecutive month.

Wheat prices dropped due to the seasonal availability of the ongoing winter wheat harvests in the northern hemisphere, along with favourable conditions for spring wheat crops in Canada and the United States, according to the FAO.

The report also noted that corn 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.

Prior to July, the FAO food price index had risen for four consecutive months after reaching a three-year low in February. This came after food prices receded from a record peak set in March 2022, following Russia's invasion of Ukraine, a major crop export country.

The July value was 3.1% lower than its level one year ago and 24.7% below its high point in 2022.

-      Reuters