Global Food Prices Hit Lowest Point in Over Two Years

As reported by S&P Global this July, In accordance with the UN Food and Agriculture Organization, the FAO Food Price Index averaged 122.3 points in June, a decrease of 1.4% month over month and a decrease of 23.4% from the record high recorded in March 2022.

Vegetable oil, dairy, and sugar price indices drove the decreasing trend in food prices for June, while grain and meat price indices were generally unchanged. The food index was at its lowest point in more than two years at 122.1 in April 2021.

As per the FAO, global cereal prices decreased for the fifth consecutive month in June, down 2.1% month over month to average 126.6 points. On an annual basis, the index was down 23.9%. Due to increased seasonal supplies from Brazil and Argentina, maize prices have fallen for five consecutive months globally. According to the research, recent showers in important corn-producing areas of the US further reduced pressure on market prices.

Meanwhile, the global vegetable prices fell to 115.8 points in June, their lowest level since November 2020, by a year-over-year rate of 45.3%, and a monthly rate of 2.4%. This was principally caused by a decline in the cost of palm and sunflower oils, which more than made up for an increase in the cost of soy and rapeseed oils.

In June, the price of international palm oil fell for the second consecutive month, primarily due to expectations of seasonally increased yields from the top producing nations. This was at the same time as persistently weak global import demand from important buyers. While there were adequate supplies of exportable sunflower oil available worldwide, prices kept declining.

In June, the price of international palm oil fell for the second consecutive month, primarily due to expectations of seasonally increased yields from the top producing nations. This was at the same time as persistently weak global import demand from important buyers. While there were adequate supplies of exportable sunflower oil available worldwide, prices kept declining.

However, international soybean oil prices increased from the previous month thanks in large part to worries of extreme dryness in isolated areas of important US growing regions. Similar to how the price of rapeseed oil in the world recovered somewhat due to poor weather in portions of Canada and Europe.

As for meat prices on the international market, they decreased by 6.4% over a year to 117.9 points, although they were unchanged on a monthly basis. The FAO reported that the price of poultry increased “on the back of high import demand from East Asia amid ongoing supply challenges linked to the widespread avian influenza outbreaks”.