Major fall in global food prices for July, but future supply worries remain |

The United Nations agency has released the eagerly awaited latest information Food Price IndexThe barometer tracks monthly changes in the international prices of five food commodities: grains, vegetable oils, dairy products, meat and sugar.

The index averaged 140.9 points in July, down 8.6 points from June. This decline was led by a double-digit drop in vegetable oil as well as grain prices, with the recent United Nations-brokered agreement on Ukraine’s grain exports being a contributing factor.

Welcome but beware

“The drop in food commodity prices from very high levels is welcome, especially from a food access point of view,” speak Maximo Torero, FAO Chief Economist.

“However, many uncertainties remainThese include high fertilizer prices that can affect future production prospects and farmers’ livelihoods, a bleak global economic outlook, and currency fluctuations, all of which place serious strains on farmers. global food security”.

In July, the FAO Vegetable Price Index fell 19.2% from June, marking a 10-month low. International quotes for all oils fell, with palm oil prices falling, for example, due to strong export prospects out of Indonesia, the agency said.

In addition, sunflower oil prices also dropped markedly amid a decline in global import demand, despite continued logistical uncertainties in the Black Sea region. Vegetable oil prices were also pushed down by falling crude oil prices.

Black Sea export deal

The Grain Price Index also reflects a drop of 11.5% last month, although it is still 16.6% from July 2021. Prices of all grains in the index fell, led by wheat.

The FAO said world wheat prices fell by up to 14.5%, partly in response to the Russia-Ukraine agreement on grain exports from the important ports of the Black Sea, and also because of the seasonal availability from the ongoing harvests in the Northern Hemisphere.

July also saw raw grain prices drop 11.2%. Maize fell 10.7%, partly due to the Black Sea Grains Initiative and increased seasonal availability in Argentina and Brazil. In addition, international rice prices also fell for the first time this year.

Good news

The sugar price index fell nearly 4%, amid concerns about the demand outlook due to expectations of a further global economic slowdown, a weakening Brazilian currency, lower real and ethanol prices leading to output. the road there was larger than previously expected.

The downtrend was also influenced by signs of larger exports and a favorable manufacturing outlook in India. Meanwhile, hot dry weather in the European Union countries also raised concerns about sugar beet production and prevented a sharper decline.

The FAO further reported that the Dairy Price Index fell 2.5% “amid lackluster trading activity”, but remained at an average of 25.4% compared to July last year.

While milk powder and butter prices fell, cheese prices remained steady, boosted by demand in European tourist destinations.

Mixed images for meat

Meat prices also continued their downward trend, down half a percent compared to June due to weak import demand. However, poultry prices hit an all-time high, boosted by corporate import demand and tight supply due to the outbreak of avian influenza in the Northern Hemisphere.

The FAO Meat Price Index also fell in July, 0.5% from June, due to weakening import demand for buffalo, beef and pig meat. In contrast, international poultry meat prices hit an all-time high, underpinned by steady global import demand and tight supplies due to the outbreak of avian influenza in the Northern Hemisphere.

Source link


News5s: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button