FAO: global food prices rose in July

The leading overall price index of international food raw material prices was 123.9 points in July, which is an increase of 1.5 points (1.3 percent) compared to June, and 16.6 points or 11.8 percent lower than the July 2022 value. The increase in the overall index in July was caused by the significant increase in the price of vegetable oils, while the international prices of sugar, cereals and dairy products, as well as the meat price index, also decreased. The FAO food price index is a trade-weighted index that takes into account the international market prices of the five most important food commodities – vegetable oils, cereals, meat, dairy products and sugar.

The grain and vegetable oil price indices also decreased

The FAO cereal price index averaged 125.9 points in July, 0.7 points (0.5 percent) lower than in June and 21.3 points (14.5 percent) lower than a year earlier. In the monthly comparison, the world market price of rice and wheat rose, while the price of corn continued to fall. International wheat prices rose by 1.6 percent, for the first time in the last nine months, mainly due to the uncertainty of Ukrainian exports. The vegetable oil price index averaged 129.8 points in July, which is an increase of 14.0 points (12.1 percent) compared to June. After seven months of decline, the index rose for the first time in July, the significant increase in July was caused by higher world market quotes for sunflower, palm, soybean and rapeseed oil.

The price of dairy products and meat also went down, along with sugar

The price index for dairy products averaged 116.3 points in July, which is 0.5 points (0.4 percent) lower than in June and 30.2 points (20.6 percent) lower than a year ago. The weakening of the index in July was primarily caused by the fall in international skimmed milk powder and butter, while whole milk powder and cheese rose in price. The FAO meat price index averaged 117.8 points in July, which is a decrease of 0.4 points (0.3 percent) compared to June. Last month, the international price of beef and pork increased, while the price of poultry and sheep decreased. Compared to last July, the meat price index decreased by 6.3 points (5.1 percent). The sugar price index averaged 146.3 points in July. This was down 5.9 points (3.9 percent) from June and was the second straight decline after four consecutive monthly gains. The price of sugar in July this year was 33.4 points (29.6 percent) higher than last July.

MTI