July food prices in the world fell by more than 8%
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World food prices have been declining for the fourth month since peaking in March, and the fall in the food price index was the sharpest since October 2008. About it informs Food and Agriculture Organization of the United Nations (FAO) in the latest published Food Price Index.
The FAO Food Price Index is an indicator that reflects the monthly movements in the international prices of a basket of food commodities.
“The average value of the FAO Food Price Index continued to decline for the fourth month in a row and in July amounted to 140.9 points, which is 13.3 points (8.6%) lower than its June level. At the current level, the value of the index turned out to be 16.4 points (13.1 percent) higher than the corresponding period last year,” the organization said in a statement.
How world food prices fell in July:
- vegetable oil – prices fell by 19.2%;
- grain crops – a drop in prices by 11.5%;
- sugar – prices fell by 3.8%;
- dairy products — price reduction by 2.5%
- meat – prices fell by 0.5%.
Part of the decline in grain prices is due to a four-way deal between Ukraine, Russia, Turkey and the UN to resume grain exports from Ukraine. In addition, the start of harvesting in the Northern Hemisphere influenced the fall in prices. Despite this, world wheat prices remain 24.8% higher than in July 2021.
The decline in prices for vegetable oil occurred despite logistical difficulties in the Black Sea region. This is due to the reduction in crude oil prices as well as global import demand.
FAO experts attribute the fall in prices for dairy products to weak market activity in Europe, associated with the onset of the summer holidays.
Sugar prices fell mainly due to the depreciation of the Brazilian real against the US dollar and the reduction in ethanol prices, which led to an increase in sugar production in Brazil.
March food prices established record. Then the FAO food price index rose by 33.6% year-on-year and by 12.6% against February, when the index had already reached an absolute maximum since 1990. Since April, prices have started to decline slightly.
Earlier it was reported that the price of the September futures for wheat decreased by 4.96% to $841 per ton. Since March, wheat has fallen in price by 38.5%. Prices for soybeans (-3.11%, to $1,510.50), oats (-0.99%, to $511.2) and rice (-1.79%, to $16.4) are also falling.
World faced with the aggravation of the food crisis due to the events in Ukraine, as a result of which large volumes of agricultural products were blocked in Ukrainian ports.
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