A new report released today by the United Nations Food and Agriculture Organization (FAO) reveals that world food prices fell “significantly” in July. The values for cereals and vegetable oils were the values that showed the most withdrawal.
The end of the most critical moment of the epidemic, the explosion in fuel prices and the embargo imposed on Ukrainian ports caused commodity prices to reach unprecedented levels. The UN fears that the international scenario will lead to an explosion in the number of hungry and undo decades of progress towards poverty reduction around the world. Another fear is that hunger will reopen political crises in different regions.
But the good news is that the FAO Food Price Index averaged 140.9 points in July, 8.6% lower than the June rate. According to the organization, this is the fourth consecutive monthly decline since reaching historic highs at the beginning of the year.
Despite the drop, the index is 13.1% higher than July 2021.
“The very high drop in food commodity prices is welcome, especially from a food access point of view,” said Maximo Torero, FAO Chief Economist.
“However, many uncertainties remain, including high fertilizer prices that could affect future production prospects and farmers’ livelihoods, a bleak global economic outlook, and currency movements, all of which put severe pressures on global food security,” Torero said. he added.
Vegetable Oil Price Index fell 19.2% in July compared to June, recording its lowest level in 10 months. According to the FAO, soybean oil prices also fell “due to a prolonged period of sluggish demand.”
Grain prices fell 11.5% this month. However, they remain 16.6% above their July 2021 values. Wheat led the decline with a contraction of 14.5%, in part in response to the agreement reached between Ukraine and Russia to unlock exports from major ports. Continuing crops in the Northern Hemisphere.
Egypt also fell, in part due to the deal between Ukraine and Russia, as well as increased offers from Argentina and Brazil. International rice prices also fell for the first time in 2022.
The FAO Sugar Price Index is still down 3.8% from June. According to the business, this is due to “concerns about demand expectations resulting in a greater global economic slowdown, a weakened real and lower ethanol prices, and higher-than-expected sugar production in Brazil this month.”
“High export indicators in India and positive production prospects also contributed to the decline in world sugar prices, while hot and dry weather in the European Union raised concerns over sugar beet yields and prevented further sharp price drops,” he explains.
In dairy products, the decrease in July was 2.5% compared to June. However, they remain on average 25.4% above their July 2021 values. “Prices of cheese have remained stable while prices of milk powder and butter have fallen due to demand in European tourist destinations,” the FAO emphasizes.
In the case of meat, the variation was only 0.5%. “In contrast, international poultry prices reached an all-time high, supported by strong global import demand and tighter supply due to bird flu outbreaks in the northern hemisphere,” FAO said.
source: Noticias
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