Five commodities – cereals, vegetable oils, dairy products, meat and sugar – have lower prices in August than in July, according to the latest food price index.
Although down nearly 2% compared to July, he is 7.9% higher than the previous year.
FAO said the fall in grain prices reflected improved production prospects in North America and Russia and the resumption of exports from Ukraine’s Black Sea ports.
In July, the countries, Russia, Turkey and the United Nations signed a landmark agreement to unblock Ukraine’s grain exports amid the ongoing war.
Rice prices were stable on average in August, while prices of coarse grains such as maize rose slightly. Vegetable oil prices fell 3.3%, slightly below August 2021 levels. FAO attributes this to the increased availability of palm oil from Indonesia due to lower export tariffs and the resumption of sunflower oil shipments from Ukraine.
Despite recording a 2% drop, milk prices remained 23.5% higher than they were in August 2021. Declining production in Western Europe and the United States.
Meat prices, he said, fell 1.5%, but were still just over 8% higher than last August. International poultry prices fell amid rising export potential, with weaker domestic demand in some major exporting countries pushing beef prices lower while pork prices rose.
Sugar prices also hit their lowest level since July 2021. This is mainly due to the increase in export caps in India and lower ethanol prices in Brazil.
FAO also released this year’s global cereal production forecast. It forecasts a year-on-year decrease of about 40 million tonnes (1.4%).
Most of this decline has primarily affected coarse grains, with European maize yields expected to be 16% below the five-year average due to very hot and dry weather conditions affecting the continent. .
In contrast, FAO expects a “negligible decline” in global wheat production as record crops are expected in Russia and favorable weather conditions are expected in North America. Global rice production is also expected to fall 2.1% from a record high.
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