FAO Food Price Index dips slightly in August

New 2024 forecasts for global cereal output point to a weather-driven drop in coarse grains offset by expected increases for wheat and rice

The Food and Agriculture Organization of the United Nations (FAO) reported that the world food commodity prices decreased slightly in August. The FAO Food Price Index averaged 120.7 points, which is a 1.1 per cent decrease from August 2023. The FAO Cereal Price Index was down by 0.5 per cent due to lower global wheat export prices and increased production in some countries, while maize prices went up slightly because of heatwaves affecting yields in some regions. The FAO All-Rice Price Index increased by 0.6 per cent due to seasonal tightness and currency appreciations of some exporting countries.

The FAO Vegetable Oil Price Index rose by 0.8 per cent, reaching a 20-month high, driven by increases in international palm oil prices. The FAO Dairy Price Index increased by 2.2 per cent, with the whole milk powder, international cheese, and butter quotations all rising due to various factors.

The FAO Meat Price Index declined by 0.7 per cent, while poultry, pig, and ovine meat prices all decreased. World bovine meat prices, on the other hand, increased slightly. The FAO Sugar Price Index declined by 4.7 per cent, reaching its lowest level since October 2022, but there were sharp sugar price increases in late August due to concerns about the impact of fires on sugarcane fields in Brazil.