The United Nations’ FAO Food Price Index eased slightly in August to 120.7 points as decreases in the prices of sugar, meat and cereals outweighed increases in those for vegetable oils and dairy products. Compared to historical levels, the Food Price Index in August averaged 1.1 percent lower than its corresponding value one year ago and 24.7 percent below its peak of 160.3 points reached in March 2022.
Cereal prices down
The latest Food Price Index release from the Food and Agriculture Organization reveals that the cereal price index averaged 110.1 points in August, down 0.6 points from July and 14.9 points from August 2023.
Global wheat export prices fell month-on-month, reflecting sluggish international demand and strong competition among exporters. Higher-than-previously-expected wheat production in Argentina and the U.S. also contributed to the softer prices. In contrast, world maize prices rose slightly due to concerns over the impact of heatwaves on yields in the European Union and parts of the U.S.
Global cereal production to decline
The vegetable oil price index averaged 136.0 points in August, up 1 point month-on-month and hitting the highest level since January 2023.
The dairy price index averaged 130.6 points in August, up 2.8 points from July and standing 16.3 points above its corresponding value a year ago. Meanwhile, the FAO meat price index averaged 119.5 points in August, down 0.9 points from July. However, it is still standing 4.3 points above its corresponding value last year.
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