A sharp drop in the world food price index

A report by the Food and Agriculture Organization of the United Nations (FAO) indicated that its average food price index closed at 140.9 points at the end of last July, a drop of 13.3 points, marking the fourth consecutive monthly drop.

The report, issued recently, indicated that the fall registered in July is the largest monthly fall in the value of the index since October 2008, driven by a significant drop in the indicators of vegetable oils and cereals, while the indicators of sugar, dairy and meat also decreased, but to a lesser extent.

According to the same source, the average “FAO” grain price index reached 147.3 points in July, after a fall of 11.5 percent since June, but remained higher by 21.0 points, equivalent to to 16.6 percent of its value in July 2021, according to international data. Known prices for all Grains represented in the index decreased significantly.

World wheat prices fell as much as 14.5 percent in July, due in part to the agreement reached between Ukraine and Russia, under the auspices of the United Nations and Turkey, to resume grain exports from Ukraine.

On the other hand, the seasonal availability of common crops in the northern hemisphere affected prices. However, world wheat prices are still 24.8 percent above their value in July last year.

According to the same report, the average prices of vegetable oils stood at 171.1 points in July, down 40.7 points or 19.2 percent, registering the lowest level in 10 months. This sharp drop was driven due to the fall in international prices of palm, soybean, rapeseed and sunflower oils.

In the same context, the average price of dairy products registered 146.4 points in July, 3.8 points or 2.5 percent less than in June, although it is still 29.7 points or 25.4 points higher than its value in July last year. .

In turn, average meat prices fell 124.0 points in July, down 0.6 points from 0.5 percent since June, marking the first monthly decline after 6 consecutive monthly increases. Average sugar prices hit 112.8 points in July, 4.4 points down 3.8 percent from June, marking the third consecutive monthly drop and hitting the lowest level in 5 months.