Food and Agriculture Organization of the United Nations: Global food price index declined slightly in August

On September 6, the Food and Agriculture Organization of the United Nations (FAO) released data showing that the global food price index in August was 120.7 points, a slight decrease on a month-on-month basis and a 1.1% decrease year-on-year.

Looking at the changes in various food price indices, the declines in sugar, meat and cereal prices offset the increases in vegetable oil and dairy prices. The cereal price index fell by 0.5% month-on-month in August, mainly due to the decline in global wheat export prices. The reasons include the supply of competitively priced wheat from the Black Sea region and the better-than-expected wheat production in Argentina and the United States. World corn prices edged up slightly due to the adverse impact of heat waves on yields in parts of the European Union and the United States. The rice price index rose by 0.6%. Affected by seasonal tightening and the appreciation of the currencies of some exporting countries against the US dollar, rice quotations except for japonica rice rose.

The vegetable oil price index rose by 0.8% month-on-month in August, reaching a new high in 20 months. Mainly, the increase in world palm oil prices offset the declines in soybean oil, sunflower oil and rapeseed oil quotations. The dairy price index rose by 2.2% month-on-month. The increase in whole milk powder prices is due to the surge in import demand for spot supplies. Global cheese prices also rose due to increased global import demand, and international butter quotations hit a record high. The meat price index fell by 0.7% month-on-month. Low import demand led to declines in international poultry, pork and mutton prices. International beef prices rose slightly. The sugar price index fell by 4.7% month-on-month, reaching the lowest level since October 2022. Mainly due to the improved sugarcane production prospects in Thailand and India and the decline in international crude oil prices.

The changes in the global food price index are affected by a combination of factors, including supply and demand, climatic conditions, and international market dynamics. The slight decline in the global food price index in August is of certain significance for the stability of the global food market and the living costs of consumers. It will also be closely watched by governments of various countries, related industries and the international community. In the future, its trend still remains uncertain, and changes in relevant factors need to be continuously observed and ***yzed.