Its latest food price index shows prices of five commodities — cereals, vegetable oil, dairy, meat and sugar — were lower in August than in July.
🔴 World food commodity prices fell for the fifth consecutive month in August (1.9% from July) but remained 7.9% above their value a year ago.
Global cereal production will decrease by 38.9 million tonnes (🔻1.4%) in 2022 from the previous year.
– FAO Newsroom (@FAOnews) September 2, 2022
This index tracks monthly international prices of breadbasket staples. It averaged 138.0 points last month, down nearly two percent from July, though still up 7.9 percent from a year earlier.
Ukraine exports a factor
The fall in cereal prices reflects improved production prospects in North America and Russia, FAO said. Resumption of exports from Black Sea ports in Ukraine.
The country, Russia, Turkey and the UN signed a landmark agreement in July to unblock Ukraine’s grain exports amid the ongoing war.
Average rice prices remained stable in August, while quotes for coarse grains such as maize rose slightly.
Vegetable oil prices fell 3.3 percent, slightly below August 2021 levels. FAO attributed this to increased availability of palm oil from Indonesia due to lower export taxes and the resumption of sunflower oil shipments from Ukraine.
High price for cheese
Although dairy prices fell by two percent, they were 23.5 percent higher than in August 2021. The price of cheese It has increased for the tenth month in a rowMilk prices “eased” following expectations of increased supply from New Zealand, even amid lower production projections in Western Europe and the US.
Meat prices are down 1.5 percent but remain just over eight percent above last August’s value.
International quotations for poultry fell amid increased export availabilities and beef prices fell due to weak domestic demand in some top exporting countries, while quotations for pork rose.
The price of sugar has also fallen on them The lowest level since July 2021Mostly due to export restrictions in India and low ethanol prices in Brazil.
Outlook for Cereals and Wheat
The FAO released its forecast for global cereal production this year, projecting a decline of about 40 million tonnes, or a 1.4 percent decline from the previous year.
Much of this decline is mainly related to coarse grains, with maize yields in Europe expected to fall 16 percent below the five-year average due to unusually hot and dry weather affecting the continent.
In contrast, FAO expects there to be a “negligible decline” in worldwide wheat production due to expected record harvests in Russia and favorable weather conditions in North America.
Global rice production is expected to decline by 2.1 percent from the all-time peak reached in 2021.