World food prices in August decreased by 1.9% compared to July. Prices have been falling for the fifth month in a row after the all-time high recorded in March.
According to the FAO (Food and Agriculture Organization of the United Nations), the food price index in August amounted to 138 points, which is 1.9% lower than in July. But it remains 7.9% higher than in August last year.
The grain price index in August fell by 1.4% compared to July, but remained 11.4% above the level of August 2021. In August, international wheat prices fell 5.1%. This indicator has been declining for the third month in a row, due to improved crop prospects, especially in Canada, the US and the Russian Federation. At the same time, wheat prices are 10.6% higher than in August last year.
Global corn prices edged up 1.5% in August, largely driven by lower crop prospects in the EU and US due to hot and dry conditions, while resumption of exports from Ukraine prevented prices from rising even higher, the report says.
The price index for vegetable oils in August decreased by 3.3% compared to July, but remains above the level of the previous year. The fall was due to a decrease in world prices for palm, sunflower and rapeseed oils. Soybean oil quotes rose.
The price index for dairy products in August fell by 2% compared to July. The decline continues for the second month in a row, but prices are still 23.5% higher than in the corresponding period last year.
The meat price index in August fell by 1.5%, but it is still 8.2% higher than in August last year. “In August, international quotations of poultry meat fell sharply, which is associated with a reduction in purchases by leading importers amid higher export supply. The decline in world prices for beef is attributed to weak domestic demand in some leading exporting countries, which led to an increase in their export offer , and some increase in supplies from Australia, with pork quotes rising on continued low supply of ready-to-slaughter pigs, while a modest increase in mutton prices due to increased import demand from some European countries, which helped to offset the reduction in purchases from China “, the review says.
The sugar price index in August fell by 2.1%. This index has been falling for the fourth month in a row and has reached its lowest level since July 2021. This is due to an increase in the marginal volume of sugar exports from India and a decrease in ethanol prices in Brazil, which suggests that the volume of sugar cane used for sugar production will also increase, FAO experts say.
The FAO Food Price Index is a weighted average that tracks international price movements for five major food commodity groups.
