The Strategist

World food prices start declining after rising in July

09/11/2023 - 03:42

Following a modest increase in July, global food prices dropped in August, according to the UN Food and Agriculture Organization (FAO).

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Last month, the FFPI food price index dropped to 121.4 points. The index was down 2.1% as compared to July.

In August 2023, the FAO Food Price Index averaged 121.4 points, down 2.1% from July and up to 24% from the highs recorded in March 2022. The index's rise from the previous month was reversed. According to FAO, the dip was caused by a drop in the price indices for dairy, vegetable oils, meat, and grains, offset by a slight increase in the price index for sugar.

FAO monitoring data show that world wheat prices fell by 3.8% in August on the back of increasing seasonal supply from several top exporters. In spite of plentiful supplies of maize due to a record-breaking crop in Brazil and the impending start of the US harvest, coarse grain prices decreased 3.4% globally last month.