Food prices fell again in July, UN agency says

Food prices fell again in July, UN agency says

A woman shops for cooking oil made from oil palms at a supermarket in Jakarta March 27, 2022. — Reuters pic

Friday, 05 Aug 2022 6:56 PM MYT

LONDON, Aug 5 — The United Nations food agency’s world price index declined again in July, edging further away from record highs hit in March.

The Food and Agriculture Organisation’s (FAO) food price index https://www.fao.org/worldfoodsituation/foodpricesindex/en, which tracks the most globally traded food commodities, averaged 140.9 points last month versus a revised 154.3 for June. The June figure was previously put at 154.2.

The July index was still 13.1 per cent higher than a year earlier, pushed up by the impact of the invasion of Ukraine, adverse weather and high production and transport costs.

“The decline in food commodity prices from very high levels is welcome, however, many uncertainties remain,” said FAO Chief Economist Maximo Torero.

A bleak global economic outlook, currency volatility and high fertilizer prices — which can impact future production and farmers’ livelihoods — all pose serious strains for global food security, he said.

The vegetable oil, sugar, dairy, meat and cereal price indices all fell month-on-month in July, with wheat slumping 14.5 per cent, partly due to a deal reached between Ukraine, Russia, Turkey and the United Nations to unblock grains exports from Black Sea ports.

The maize price index fell 10.7 per cent in July, also due in part to the Russia-Ukraine deal as well as increased seasonal availability from key producers Argentina and Brazil, the FAO said.

Three ships carrying a combined 58,041 tonnes of corn were authorised to leave Ukrainian ports on Friday, the organisation arranging the operation said. A first vessel carrying Ukrainian grain set sail from Odesa on Monday. — Reuters