FAO finds global food commodity prices broadly unchanged in July

05 Aug 2024 --- The UN Food and Agriculture Organization (FAO) has revealed that the benchmark for world food commodity prices was broadly unchanged in July for the second month in a row. Increases in international quotations for vegetable oils, meat products and sugar offset an ongoing decrease in those for cereals.

The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally traded food commodities, averaged 120.8 points in July, marginally below its revised 121.0 figure for June. The index is now 3.1% lower than its corresponding value one year earlier.

The FAO Cereal Price Index declined by 3.8% from June as the global export prices of all major cereals decreased for the second consecutive month.

Wheat quotations dipped on increasing seasonal availability from ongoing winter harvests in the northern hemisphere and generally favorable conditions in Canada and the US, supporting expectations for large spring wheat harvests later in the year.

Maize export prices also declined as harvests in Argentina and Brazil progressed ahead of last year’s pace, and crop conditions in the US remained robust. The FAO All-Rice Price Index declined by 2.4% from June amid generally quiet trading activities for both Indica and Japonica varieties.

Contrastingly, the FAO Vegetable Oil Price Index rose 2.4% from June to reach a one-and-a-half-year high. Global quotations for palm, soy, sunflower and rapeseed oils all increased, lifted by robust demand for soy oil from the biofuel sector and deteriorating crop prospects for sunflower and rapeseed oils in several major producing countries.

The FAO Meat Price Index increased by 1.2% in July amid robust import demand for ovine, bovine and poultry meat, even as pig meat prices declined marginally due to an oversupply situation in Western Europe.

The FAO Sugar Price Index increased by 0.7% from June as lower-than-expected production in Brazil outweighed the impact of improved monsoon rainfall in India and conductive weather conditions in Thailand.

The FAO Dairy Price Index was unchanged in July, as decreases in the quotations for milk powders offset increases in those for butter and cheese.

More information on July’s Food Price Index can be found here. The next FAO Food Price Index will be released on September 6.