Food prices fell by 1.9% in August

Food prices fell by 1.9% in August
Food prices fell by 1.9% in August

According to the Food and Agriculture Organization of the United Nations (FAO), which records the monthly variation in international prices of a basket of basic food items, it has steadily declined from the all-time high reached in March after Russia’s invasion of Ukraine.

In detail, the Food Price Index stood at 138 points in August, down 1.9% from July. However, despite its fifth consecutive monthly decline, the index remained 7.9% higher than a year ago. In any case, all sub-commodity indices fell between 1.4% and 3.3%.

Cereals

The grain price index moved to 145.2 points, down 1.4% from July, but still 11.4% higher than the August 2021 price. In particular, international wheat prices fell by 5.1%, marking the third straight monthly decline, due to improved production prospects, especially in Canada, the United States and Russia, and higher seasonal availability as harvests continued in the northern hemisphere and exports resumed from Black Sea ports after more than five months of interruption. In contrast, international coarse grain prices registered a marginal increase of 0.2% and 12.4% compared to August 2021. Global corn prices were also slightly strengthened, which were largely affected by lower production prospects in EU. and the US due to drought. In contrast, barley prices fell by 3.8%, while the rice price index remained stable.

Vegetable oils

At the same time, the FAO index for vegetable oils fell by 3.3% in August, “to a slightly lower level than that of August 2021”. As for sunflower oil, which Ukraine produces in large quantities, its prices fell due to prolonged sluggish global import demand that coincided with the gradual resumption of exports from Ukrainian ports. In the same trajectory, both palm oil and canola oil prices fell, and only soybean oil rose marginally, due to concerns about the impact of adverse weather conditions on the production of the United States, the organization underlines.

Dairy Products

For dairy, the FAO price index stood at 143.5 points in August, down 2% from July, marking the second straight monthly decline, but still 23.5% above value it had a year ago. In August, international prices for butter and milk powder declined, mainly due to weaker demand for spot supply from most leading importers as stocks remained adequate to meet their immediate needs. Market expectations of increased supplies from New Zealand in the new crop season also weighed on international prices, despite falling milk production in several key producing regions, including Western Europe and the US. In contrast, cheese prices rose for a 10th consecutive month, reflecting steady global import demand and strong domestic sales, especially in European tourist destinations.

Meats

Finally, global meat prices fell 1.5% from July, also marking the second consecutive monthly decline since the all-time high recorded in June 2022, but remained 8.2% higher than the corresponding price a year ago from a year. Further, international poultry meat prices declined in August due to lower import purchases by leading importers and marginally increased global export availability. Meanwhile, global beef prices fell due to weak domestic demand in some leading exporting countries. In contrast, pork prices rose due to continued low supply of pigs, while sheep and goat meat prices recovered partially as increased import demand from some European countries offset lower purchases from China.


The article is in Greek

Tags: Food prices fell August

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