© FAO/M. Mohammed The FAO Food Price Index tracks movements in international prices for a basket of basic food commodities. Global food prices rose in July amid heat, expensive energy and geopolitical risks Economic development
Global food prices rose again in July as heat, rising energy costs and ongoing geopolitical tensions pushed up prices for grains, vegetable oils and sugar. This is stated in the monthly review of the Food and Agriculture Organization of the United Nations (FAO).
The FAO Food Price Index, which tracks the dynamics of international prices for a basket of basic food products, amounted to 131.1 points in July. This is 0.6 percent higher than the June level and one percent higher than a year ago.
Jump in grain prices
The increase was most noticeable in the grain segment. The grain price index increased by 3.4 percent.
Global wheat prices jumped 5.8 percent on concerns about continued disruptions to exports through the Black Sea and the possible impact of recent abnormal temperatures on crops in key producing countries. tension. The rice price index remained generally stable.
Vegetable oil prices are also rising
Vegetable oils also rose in price: the index rose 2 percent and reached its highest since June 2022.
Palm oil prices rose thanks to strong demand from Indonesia’s biodiesel sector and rising oil prices.
Soybean oil has risen in price due to high demand for raw materials for biofuel in the United States and increased global imports due to improved price competitiveness.
At the same time, quotations of sunflower and rapeseed oil have decreased.
Meat prices are falling
After From its June record high, the meat price index weakened by 2.8 percent, marking the first decline this year. Global poultry prices fell due to lower export prices from Brazil amid ample supply.
Pork prices fell amid a glut of production in the EU and weak demand in the global market. Beef prices also went down due to weakening imports in Asian countries. Lamb prices hit a new record high as Oceania’s export potential remains limited.
Dairy
The dairy price index decreased 0.7 percent. Whole and skim milk powders and butter fell in price.
Cheese prices rose for the first time in a year, as seasonal declines in milk production in the EU outweighed continued declines in prices in Oceania and pressure from abundant export supplies and increased US competition.
Sharp price increases for sugar
The most noticeable growth was shown by sugar: its index increased by 5.6 percent, completely neutralizing the June decline. The reason was concerns about the impact of prolonged heat and drought on crops in the EU, as well as the possible impact of the El Niño weather phenomenon on production in key Asian countries.