Rising global food prices driven by cereal, others–FAO

Th e Food and Agricultural Organisation’s (FAO) monthly Food Price Index for July has revealed that the high price which is the third consecutive month in July since January 2015 was driven mainly by higher cereal, sugar and dairy quotations. It stated this in a statement gotten from it website on Saturday that the monthly trade-weighted index tracking international market prices of fi ve major food commodity groups, averaged 179.1 points in July, its highest value marking a 2.3 percent increase from June 2017 and 10.2 percent rise from its level a year earlier.

According to the repor, the index price for cereal was up 5.1 percent in July. “Th e Index has been rising consistently over the past three months, supported by fi rmer wheat and rice quotations. Wheat values rose the most in July, as continued hot and dry weather conditions hampered spring wheat crops in North America, while seasonal tightness pushed up rice prices. On the other hand, maize prices remained largely steady,” the report revealed. Th e Dairy Price Index gained 3.6 percent in July, underpinned by stronger prices of butter, cheese and Whole Milk Powder (WMP). Tighter export availabilities pushed butter prices to a new high in July, widening further the spread between butter quotations and other dairy products. While the Sugar Price Index rose by 5.2 percent in July, marking the fi rst monthly increase since the beginning of the year. Th e strong appreciation of the Brazilian real was the main driver behind this rebound in sugar values. Despite the latest increase, sugar prices remain well below (26 percent) the corresponding period last year. “Vegetable Oil Price Index fell 1.1 percent from June to its lowest level since August 2016. Th e July slide primarily refl ected good production prospects for palm oil in Southeast Asia and weak global import demand. “Meat Price Index remained steady. An increase in international prices for ovine meat in July was off set by downward price movements in bovine, pig and poultry sectors,” the report states.

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