The trend of world food prices falling in July

The FAO food price index for 2024/7 fell to 120.8 from 121 in June, when it was revised upward, as falling grain prices outpaced rising costs of vegetable oil, meat products, and sugar.

The grain price index fell 3.8% to its lowest level since September 2020. This is because winter wheat harvesting continues, and overall good conditions continue in Canada and the United States, so global export prices for all major grains have fallen for 2 consecutive months as the number of grains available seasonally increases.

Meanwhile, the cost of vegetable oil increased 2.4% due to rising market prices for palm oil, soybean oil, sunflower oil, and rapeseed oil.

The meat index rose 1.2% to the highest price since 2022/9. Sugar prices rose 0.7 percent, due to Brazil's sugar production falling short of expectations.

Dairy prices were little changed as the fall in powdered milk almost offset the rise in butter and cheese.

Source: United Nations Food and Agriculture Organization