Last month, global food prices turned downward after a month.
According to the Ministry of Agriculture, Food and Rural Affairs on the 9th, the Food Price Index released by the United Nations Food and Agriculture Organization (FAO) last month was 121.4, down 2.1% from the previous month (124.0).
The Food Price Index reached its peak at 159.7 in March last year, right after the outbreak of the Ukraine war, and mostly showed a downward trend every month, falling to 122.7 in June this year. However, in July, it rose to 124.0 due to the end of the Black Sea Grain Initiative, then declined again last month.
The FAO surveys international price trends for 24 items and publishes the Food Price Index monthly by five commodity groups: cereals, vegetable oils, meat, dairy products, and sugar. The index is based on the average prices from 2014 to 2016, set at 100 for comparison.
Among the five commodity groups, prices fell in all except sugar.
The commodity group with the largest decline was dairy products (111.3), which dropped 4.0% from the previous month. Dairy prices generally fell as milk supply expanded in the Oceania region. For whole milk powder, the price decline was influenced by a slowdown in imports by China, and skimmed milk powder prices fell due to decreased demand during the summer holiday period in Europe.
The vegetable oils price index was 125.8, down 3.1% from the previous month. Palm oil and sunflower oil prices fell as supply increased in major producing countries while international demand decreased. Soybean oil and rapeseed oil prices also declined due to sufficient export supply.
The meat price index recorded 114.6, down 3.0% from the previous month. Pork prices fell as demand decreased in major importing countries while export supply from Europe increased. Poultry prices dropped as imports increased in East Asia and the Middle East, but supply was sufficient mainly from Brazil. Beef prices declined as demand in Northeast Asia weakened and supply increased in major producing countries.
The cereals price index was 125.0, down 0.7% from the previous month. Wheat prices fell as harvesting progressed in major Northern Hemisphere exporting countries. Corn prices dropped following increased harvests in Brazil and the start of harvesting in the United States. However, rice prices rose after India introduced export restrictions on Indica (long-grain) rice in July.
The sugar price index was 148.2, up 1.9% from the previous month amid expectations of worsening production conditions. In India, sugarcane production was adversely affected by insufficient rainfall, and drought was expected to reduce production in Thailand. However, prices rose only moderately due to ongoing harvesting in Brazil, the depreciation of the Brazilian real against the US dollar, and falling ethanol prices.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
