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The United Nations Food and Agriculture Organization’s global price index fell further in July, pulling away from record highs set in March.

The Food and Agriculture Organization’s (FAO) food price index, which measures the most widely traded food commodities throughout the world, averaged 140.9 points in July, down from a revised 154.3 in June. The previous number for June was 154.2.

The July index was still 13.1% higher than a year ago, owing to the effect of the Ukrainian incursion, bad weather, and high production and transportation expenses.

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

A grim global economic outlook, currency instability, and high fertilizer costs – all of which may have an influence on future productivity and farmers’ lives – all represent severe threats to global food security, according to him.

In July, the vegetable oil, sugar, dairy, meat, and cereal price indices all declined month on month, with wheat down 14.5 percent, thanks in part to an agreement negotiated between Ukraine, Russia, Turkey, and the United Nations to unblock grain shipments from Black Sea ports.

FAO said, the maize price index declined 10.7 percent in July, owing in part to the Russia-Ukraine agreement as well as greater seasonal supply from important suppliers Argentina and Brazil.

According to the organization organizing the operation, three ships carrying a total of 58,041 tonnes of grain were authorized to depart Ukrainian ports on Friday. On Monday, the first vessel carrying Ukrainian grain sailed from Odesa. 

Award-winning reporter covering high-impact events in soft commodities and agricultural commodities in general, analyzing industry trends and finding market-moving developments. Market-moving investigative articles on commodities trade flows, corporate strategy, farmer poverty, sustainability, climate change, and government policy have all been produced.

Source: Reuters


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