Food prices fell again in July – UN agency

Food prices fell again in July – UN agency

The world price index of the United Nations food agency fell again in July, moving away from the historical highs reached in March.

The food price index https://www.fao.org/worldfoodsituation/foodpricesindex/en of the Food and Agriculture Organization of the United Nations (FAO), which records food products most traded globally, reached an average of 140.9 points last month, compared to a revised 154.3 in June. The June figure was previously at 154.2.

The July index was still 13.1% higher than a year earlier, driven by the impact of the Ukraine invasion, adverse weather and high production and transportation costs.

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

Gloomy global economic prospects, currency volatility and high fertilizer prices — which may affect future production and farmers’ livelihoods — pose major challenges to global food security, he noted.

Price indices for vegetable oils, sugar, dairy products, meat and cereals all fell in July, and wheat plunged 14.5%, due in part to the agreement reached between Ukraine, Russia, Turkey and the United Nations to unblock grain exports from Black Sea ports.

The corn price index fell 10.7% in July, also due in part to the agreement between Russia and Ukraine, as well as higher seasonal availability from the main producers, Argentina and Brazil, according to the FAO.

On Friday, three ships with a total of 58,041 tons of corn were authorized to leave the Ukrainian ports, according to the organization that organized the operation. A first ship with Ukrainian grain set sail from Odessa on Monday.

Melissa Galbraith
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