Global food commodity prices have experienced a marginal decline in August, the Food and Agriculture Organisation announced on Friday.
On the reason for the decrease, it was revealed that it was primarily driven by lower quotations for sugar, meat, and cereals, which outweighed increases in vegetable oils and dairy products.
Averaged at 120.7 points in August, the FAO Food Price Index, tracks monthly changes in international prices of a basket of globally-traded food commodities.
However, this figure represents a slight decrease from the revised July figure and is 1.1 per cent below its corresponding value in August 2023.
According to information from its website said, “FAO, Cereal Price Index dropped by 0.5 per cent from July, driven by lower global wheat export prices amid competitively priced Black Sea supplies and higher-than-expected production in Argentina and the United States of America.
“Meantime, world maize prices firmed slightly, reflecting the impact of heatwaves on yields in parts of Europe and North America, while the FAO All-Rice Price Index increased by 0.6 per cent, as quotations for non-Indica varieties increased under the influence of seasonal tightness and currency appreciations of some exporting countries against the United States dollar.
“The FAO Vegetable Oil Price Index rose by 0.8 per cent from July to reach a 20-month high, as increases in international palm oil prices more than offset declining quotations for soy, sunflower and rapeseed oils.
“The FAO Dairy Price Index also rose, increasing 2.2 per cent in August. Whole milk powder increased, driven by a surge in import demand for spot supplies. International cheese prices also climbed due to higher global import demand, while international butter quotations reached an all-time high fueled by increased uncertainty over the adequacy of milk supplies in Western Europe.”
With poultry, pig, and ovine meat prices all down amid lacklustre import demand, even as world bovine meat prices increased slightly, the statement added that the FAO Meat Price Index declined by 0.7 per cent from July.
