Rome: The benchmark of world food commodity prices remained largely unchanged in August, as increases in meat, sugar, and vegetable oil prices offset declines in cereal and dairy quotations, according to the new report released by the Food and Agriculture Organisation of the United Nations (FAO) Friday.
According to Emirates News Agency, the FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally traded food commodities, averaged 130.1 points in August. This figure is marginally up from the revised July level of 130.0 points and stands 6.9% higher than a year earlier.
The FAO Vegetable Oil Price Index saw a 1.4% increase in August from July, reaching its highest level in over three years. The rise was primarily due to increased quotations for palm, sunflower, and rapeseed oils, influenced by Indonesia's plan to further raise its biodiesel blending mandate next year. Conversely, world soy oil prices edged lower amid prospects of ample global soybean supplies in the coming marketing year.
Meanwhile, the FAO Cereal Price Index experienced a decline of 0.8% from July. International wheat prices fell, influenced by larger harvests in the European Union and the Russian Federation. In contrast, global maize prices rose, partly due to increased demand for feed use and ethanol production in the United States. The FAO All Rice Price Index eased as lower Indica prices were observed amid continued fierce competition among exporters.
The report highlighted that the FAO Meat Price Index increased by 0.6% in August, reaching a new all-time high. This was led by rising international bovine meat prices, supported by strong demand in the United States and robust import demand from China, which respectively boosted Australian and Brazilian export quotations. While ovine prices also rose and pig meat prices remained stable, poultry meat quotations declined due to ample exportable supplies from Brazil.
On another front, the FAO Dairy Price Index saw a decline of 1.3% from July. This drop was driven by lower quotations for butter, cheese, and whole milk powder amid subdued import demand from key Asian markets.
Lastly, the FAO Sugar Price Index rose slightly by 0.2% from July after five consecutive monthly declines. The increase was mainly driven by concerns over sugarcane production and yields in Brazil, alongside stronger global import demand. However, prospects for larger crops in India and Thailand helped contain the price increase.