Source: Oleoscope (Russia)
The FAO food price index averaged 120.8 points in July, slightly below the revised figure of 121 points in June. The index is now 3.1 percent lower than a year ago. A measure of world food prices remained largely unchanged in July for the second month in a row as gains in international quotations for vegetable oils, meat products and sugar offset continued declines in grain prices, the Food and Agriculture Organization said on Friday.
The FAO price index for vegetable oils averaged 135 points in July, 2.4 percent higher than in June, marking the second consecutive rise to a one-and-a-half year high. The continued rise in the index reflects the higher international prices for palm, soybean, sunflower and rapeseed oil. International palm oil prices rose slightly, mainly due to robust import purchases coinciding with lower production potential in Indonesia, the world’s leading palm oil producer. Global prices for soybean oil rose for the third month in a row, mainly due to continued strong demand from the biofuel sector in North and South America. For sunflower and rapeseed oil, the increase in world market prices was primarily due to the deteriorating harvest outlook in several key producing countries of the respective oilseeds for the 2024/25 season.
The average FAO Cereal Price Index fell by 3.8% compared to June, as global export prices for all major cereals fell for the second consecutive month. Wheat prices have fallen as the winter harvest continues in the Northern Hemisphere and generally favorable conditions prevail in Canada and the United States, supporting expectations for large spring wheat harvests later this year. Prices for corn exports are also declining as harvests in Argentina and Brazil are higher than last year and growing conditions in the United States remain stable. The rice price index fell by 2.4% compared to June, as trade in the two most important rice varieties was generally quiet.
The next FAO Food Price Index will be published on September 6.