The United Nations world food price index saw a slight decline in July, as reported by the UN Food and Agriculture Organization (FAO) on Friday, August 2.
As per Reuters, the index, which monitors the most globally traded food commodities, averaged 120.8 points in July, down from 121.0 in June. The June figure was revised from an initial reading of 120.6.
The FAO Cereals Price Index dropped by 3.8%, reaching its lowest level in nearly four years. This decline was due to falling global export prices for all major cereals for the second consecutive month.
While, wheat prices decreased due to the seasonal availability from ongoing winter wheat harvests in the northern hemisphere and favourable conditions for spring wheat crops in Canada and the U.S.
The report also noted a decline in maize (corn) export prices, attributed to faster harvests in Argentina and Brazil compared to last year, and strong crop conditions in the United States.
Before July, the FAO food price index had risen for four consecutive months after hitting a three-year low in February. This was a rebound from the record peak set in March 2022 following Russia's invasion of Ukraine, a major crop exporter.
The July value was 3.1% lower than its level one year ago and 24.7% below its high point in 2022.
While, the index for cereals saw a decline, increases were noted in the indexes for meat, vegetable oils, and sugar, partially offsetting the overall decrease.
