The FAO food price index decreased slightly in August

The FAO food price index – which tracks monthly price changes for the most important food commodities in international trade – averaged 120.7 points in August, slightly below the revised July figure and 1.1% less than in August 2023.

The FAO Cereals Price Index was 0.5% lower than in July due to better-than-expected production in Argentina and the United States thanks to competitive prices for Black Sea supplies and lower global wheat export prices. Meanwhile, global maize prices rose slightly, reflecting the impact of heatwaves in parts of Europe and North America, while the price index for all rice types rose 0.6% as non-Indica varieties rose amid tight seasonal supply and some as a result of the exchange rate appreciation of exporting countries against the US dollar.

The price index of vegetable oils was 0.8% higher compared to July, reaching a 20-month high, as the rise in the international price of palm oil substantially offset the fall in the prices of soybean, sunflower and rapeseed oil.

The price of dairy products also increased, their value increased by 2.2% in August. The price of whole milk powder has risen due to a surge in import demand for dietary supplements used in sports. International cheese prices also rose due to higher global import demand, and the international quotation of butter reached an all-time high, resulting from the growing uncertainty regarding the quality of milk supply in Western Europe.

The FAO meat price index showed a 0.7% decrease compared to July, as poultry, pork and mutton prices fell due to weak import demand, which could not be compensated by a slight increase in global beef prices.