World food prices fall again in July, says FAO

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LONDON (Reuters) – The United Nations food agency’s world price index fell again in July, moving further away from the records set in March.

The Food and Agriculture Organization (FAO) https://www.fao.org/worldfoodsituation/foodpricesindex/en food price index, which tracks the most traded food commodities globally, averaged 140.9 points last month, against 154.3 (revised value) in June.

The June number had previously been calculated at 154.2.

The July index is still 13.1% higher than a year ago, driven by the impact of the Ukrainian invasion, adverse weather and high production and transport costs.

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

A bleak global economic outlook, currency volatility and high fertilizer prices – which can affect future production and farmers’ livelihoods – pose serious pressures to global food security, he said.

The price indices for vegetable oils, sugar, dairy products, meat and cereals all fell in July. Wheat fell 14.5%, in part due to a deal struck to unblock grain exports from Black Sea ports.

The corn price index dropped 10.7% in July, also reflecting the Russia-Ukraine agreement as well as increased seasonal availability from major producers Argentina and Brazil, FAO said.

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