Food Price Index rebounds

International meals commodity costs rose in July, influenced by the termination of the Black Sea Grain Initiative and new commerce restrictions on rice, says the Meals and Agriculture Group of the United Nations (FAO).

The FAO Meals Worth Index, which tracks month-to-month adjustments within the worldwide costs of globally-traded meals commodities, averaged 123.9 factors in July, up 1.3% from Might, however nonetheless 11.8% down on its July 2022 stage.

The rise was largely pushed by a pointy bounce within the FAO Vegetable Oil Worth Index, which rose 12.1% from June after seven months of consecutive declines.

Worldwide sunflower oil costs rebounded by greater than 15% within the month, principally resulting from renewed uncertainties surrounding the exportable provides after Russia’s choice to finish the implementation of the Black Sea Grain Initiative, which was launched final yr to allow exports of grains, different foodstuffs, and fertilisers amid the present struggle in Ukraine.

In the meantime, the FAO Cereal Worth Index declined by 0.5% from June, pushed by a 4.8% drop in worldwide coarse grain quotations resulting from elevated seasonal provides of maize from ongoing harvests in Argentina and Brazil and doubtlessly higher-than-anticipated manufacturing in the USA.

The FAO Dairy Worth Index declined by 0.4% in July, placing it 20.6% under its July 2022 costs. World cheese costs recovered barely after steep latest declines as scorching climate affected seasonally declining milk provides in Europe.

The FAO Meat Worth Index declined 0.3% from June. Quotations for bovine, ovine and poultry meat declined on stable provide availabilities and in some instances decrease demand from main importers. Pig meat costs, in contrast, rose, reflecting excessive seasonal demand coupled with ongoing tight provides from Western Europe and the USA of America.