Increases in international quotations for meat products and vegetable oils have been offset by an ongoing decrease in cereal prices last month, according to the latest data on world food commodity prices.
The benchmark for world food commodity prices was broadly unchanged in July for the second month in a row, according to figures published by the Food and Agriculture Organisation of the United Nations (FAO).
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 which is marginally below its revised 121.0 figure for June.
FAO Food Price Index
The sub-index for cereal prices fell by 3.8% last month as global export prices of all major cereals decreased for the second consecutive month, according to the FAO Food Price Index published today (Friday, August 2).
Wheat prices dropped due to higher seasonal availability from ongoing winter harvests in the northern hemisphere, and favorable conditions in Canada and the US, supporting expectations for large spring wheat harvests later in the year.
Seasonal pressure also underpinned a decline in maize export prices as harvests in Argentina and Brazil progressed ahead of last year’s pace, and crop conditions in the US remained above last year and average levels, the FAO said.
The vegetable oil price index rose by 2.4% in July and reached its highest point in a one-and-a-half-year period. Global price quotations for palm, soy, sunflower and rapeseed oils all saw increases last month.
International prices for vegetable oils were 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 said.
Dairy and meat prices
International quotations for dairy remained virtually unchanged last month, standing 7.2% above its corresponding value for 2023, as decreases in the indices for milk powders nearly offset increases in those of butter and cheese.
Lower quotations for milk powders were underpinned by lower import demand, especially for spot supplies, while world cheese prices increased slightly, primarily due to high internal sales in western Europe, the FAO said.
Butter prices increased moderately for the 10th consecutive month, reflecting constrained exportable availabilities, mainly in Western Europe, on solid internal sales, tight inventories and seasonally falling milk production.
The FAO sub-index for international meat prices rose by 1.2% in July. Ovine and bovine meat prices increased, underpinned by robust import demand and seasonally falling supplies of animals for slaughter in Oceania.
Meanwhile, international poultry meat prices increased due to strong import demand, amidst challenges to production stemming from animal diseases, especially avian influenza outbreaks in several major producing regions.
Pig meat prices declined marginally, reflecting an oversupply in western Europe. The FAO said this was exacerbated by China’s anti-dumping investigation and continuing constraints in accessing foreign markets due to outbreaks of African Swine Fever.
