Declining cereal prices drove the FAO Food Price Index down slightly in July despite increasing vegetable oil, meat, and sugar prices. The Index was 3.1 percent lower than its July 2023 level and nearly 25 percent below the high seen in March 2022.
The Cereal Price Index fell by 3.8 percent in July, down 12 percent from its previous year level. Increased seasonal availability and good growing conditions in the northern hemisphere, coupled with slowing global demand, drove wheat prices down. Maize prices also declined due to good harvests and seasonal conditions. Rice prices fell by 2.4 percent due to slowing trade.
The Vegetable Oil Index rose by 3.2 percent in July to reach an 18-month high. Palm oil prices were driven up by strengthening imports and reduced output growth in Indonesia, while soy oil prices rose for the third consecutive month due to rising demand for biofuels.
The Meat and Sugar Price Indices rose by 1.2 percent and 0.7 percent, respectively, in July, while the Dairy Price Index remained stable.
Sara Gustafson is a freelance communications consultant.