In July, the most significant increase in world prices was shown by dairy products - FAO
The average value of the FAO food price index in July was 94.2 points, which is 1.2 percent higher than in June and almost 1.0 percent higher than in July 2019. The FAO food price index is used to track international prices for the most marketable food products.
The FAO vegetable oil price index rose by 7.6 per cent compared to June value and reached its highest level in five months: the increase in international rates for basic vegetable oils is due to an expected decline in production volume, as in the case of palm oil, as well as increased international import demand and a shortage of migrant workers.
Over the past month, the value of the FAO dairy price index increased by 3.5 per cent, with price rise affecting all products included in it, from butter and cheese to milk powder.
The value of the FAO grain price index remained almost unchanged from June level: on the one hand, large–scale purchases made by China in the United States of America triggered a sharp increase in prices for corn and sorghum, on the other - good prospects for the rice harvest in 2020 led to a drop in rice prices. Wheat prices changed little amid a slowdown in trade activity.
The value of the FAO sugar price index increased by 1.4 per cent: encouraging data on sugar production in Brazil only partially offset the impact of rising energy prices, as well as the expected fall in sugar production in Thailand, which has suffered from a prolonged drought.
The July value of the FAO meat price index was 1.8 percent lower than a month ago, and 9.2 percent lower than in the corresponding period last year. Pork and beef prices declined in July: import demand in the world remains below export supply, despite the pandemic-related disruptions in key exporting regions. Poultry prices increased, driven by a reduction in production in Brazil due to higher feed prices and an expected drop in demand in the future.