Cheese at a market in Sao Paulo, Brazil. FAO: World food prices fall in August Economic developments
The world food price index fell slightly in August, with declines in sugar, meat and grain prices outweighing increases in vegetable oils and dairy products, the Food and Agriculture Organization of the United Nations (FAO) said on Friday.
The FAO Food Price Index, which tracks monthly changes in international prices of major food commodities, settled at 120.7 points in August, down slightly from July and 1.1 percent below its value in August 2023.
Cereals
The average price of cereals fell 0.5 percent from July, led by lower world wheat export prices amid a downward correction in Black Sea grains and higher-than-expected production in Argentina and the United States. At the same time, world maize prices rose slightly, reflecting the impact of heat on yields in parts of Europe and North America.
The rice price index rose 0.6 percent as non-Indian rice quotations rose on the back of seasonal shortages and the appreciation of some exporters’ currencies against the dollar.
Vegetable Oils
The vegetable oil price index rose 0.8 percent from July to hit a 20-month high, with gains in palm oil largely offsetting declines in soybean, sunflower and rapeseed oil quotations.
Dairy Products
The dairy product price index rose 2.2 percent in August. Full cream milk powder prices rose on a sharp increase in import demand.
International cheese prices also rose on a rise in global import demand, while international butter quotations reached a record high, helped by increased uncertainty over the adequacy of milk supplies to Western Europe.
Meat Products
The meat price index fell by 0.7 percent compared with July. At the same time, prices for eggs, poultry and pork decreased amid weak import demand.
Sugar
The cost of sugar fell by 4.7 percent in August, reaching its lowest level since October 2022. This trend was facilitated by an improved production forecast due to the upcoming sugarcane harvest in India and Thailand, as well as a decrease in world crude oil prices.