Business News | Global Food Prices Edge Up as Cereals, Sugar and Edible Oils Turn Costlier: FAO
Get latest articles and stories on Business at LatestLY. Global food commodity prices edged higher in July as rising cereal, vegetable oil and sugar prices outweighed declines in meat and dairy products, according to the Food and Agriculture Organization (FAO) of the United Nations.
Rome [Italy], August 7 (ANI): Global food commodity prices edged higher in July as rising cereal, vegetable oil and sugar prices outweighed declines in meat and dairy products, according to the Food and Agriculture Organization (FAO) of the United Nations.
The FAO Food Price Index, which tracks monthly changes in international prices of a basket of globally traded food commodities, averaged 131.1 points in July, up 0.6 per cent from June and 1.0 per cent higher than a year earlier.
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The increase was driven by higher prices of cereals, vegetable oils and sugar, reflecting concerns over weather conditions, energy markets and geopolitical developments.
The FAO Cereal Price Index rose 3.4 per cent from June, reversing its decline in May and standing 6.9 per cent above its level a year ago. Global wheat prices climbed 5.8 per cent amid concerns over disruptions to Black Sea export flows and the impact of recent heatwaves on crop yields in key producing countries.
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World maize prices increased 3.6 per cent, supported by hot and dry weather in parts of the United States and stronger energy markets amid heightened geopolitical tensions. The FAO said international rice prices remained broadly stable during the month.
The FAO Vegetable Oil Price Index increased 2.0 per cent from June, reaching its highest level since June 2022. Palm oil prices were supported by firm demand from Indonesia's biodiesel sector and higher crude oil prices, while soy oil quotations also strengthened on robust demand and improved price competitiveness. However, sunflower and rapeseed oil prices declined.
The FAO Sugar Price Index rose 5.6 per cent, recovering from its decline in June. The organisation attributed the increase mainly to concerns over persistent hot and dry weather affecting crop yields in the European Union and El Nino-related risks to production prospects in key Asian producing countries. Expectations of stronger ethanol demand in Brazil also supported prices.
Meanwhile, the FAO Meat Price Index fell 2.8 per cent from its record level in June, marking its first monthly decline this year, while the FAO Dairy Price Index eased 0.7 per cent as prices of milk powders and butter declined.
According to the FAO, weather conditions, energy prices and geopolitical developments are expected to remain key factors influencing global food commodity prices in the coming months. (ANI)
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