September 12, 2022

FAO Cereal Price Index in August dropped 1.4% from July 

The FAO Cereal Price Index in August was down 1.4% from July, but still 11% above its year-ago value.

The index averaged 145.2 points in August, down 2.0 points (1.4%) from July, but still 14.8 points (11.4%) above its August 2021 value.

In August, international wheat prices fell by 5.1%, marking the third consecutive monthly decline, driven by improved production prospects, especially in Canada, the United States and Russia, and higher seasonal availability as harvests continued in the northern hemisphere as well as the resumption of exports from the Black Sea ports in Ukraine for the first time in over five months of disruption due the war in the country.

Global wheat prices remained 10.6% above their values in August last year.

International prices of coarse grains increased marginally (+0.2%) in August and averaged 12.4% above their values a year ago.

Global maize prices firmed slightly, up 1.5%, largely influenced by lower production prospects in the European Union and the US due to hot, dry conditions, while the resumption of exports from Ukraine prevented prices from increasing further.

By contrast, global barley and sorghum prices decreased by 3.8% and 3.4%, respectively.

The FAO All Rice Price Index held steady in August, as slight declines in quotations of the most widely traded Indica varieties compensated for mild price gains in other rice market segments.

- FAO