FAO Dairy Index remained stable
Source: The DairyNews
In July 2024, the FAO Food Price Index (FFPI) recorded a slight decrease to 120.8 points, reflecting a modest decline from June's revised figure. This change was primarily driven by a reduction in cereal prices which offset gains in vegetable oils, meats, and sugar sectors. Despite recent fluctuations, the FFPI remains 3.1% lower than the same period last year and 24.7% beneath its peak in March 2022.
Cereal Sector: The FAO Cereal Price Index fell to 110.8 points, down 3.8% month-on-month and 12.0% year-on-year. The decrease is attributed to increased seasonal availability from the northern hemisphere’s winter wheat harvests and strong production forecasts from Canada and the U.S., which have helped alleviate price pressures. Additionally, declining global demand and competitive export markets have contributed to lower wheat prices, with maize and other coarse grains like barley and sorghum also experiencing similar trends. The rice index saw a 2.4% drop due to subdued trading activities.
Vegetable Oils: Contrasting with cereals, the FAO Vegetable Oil Price Index climbed 2.4% to 135.0 points, marking the highest level in eighteen months. This rise reflects escalated global prices for palm, soy, sunflower, and rapeseed oils, driven by robust demand and challenging production outlooks in key producing nations.
Dairy Products: The Dairy Index remained stable at 127.7 points, nearly identical to last month but 7.2% higher than July 2023. Price adjustments within the sector saw declines in milk powders being nearly offset by increases in butter and cheese, attributed to tight supplies and strong domestic sales in Western Europe.
Meats: The Meat Price Index increased to 119.5 points, a 1.2% rise from June, with year-on-year figures showing a modest increase of 0.8%. Price movements in this category were influenced by strong import demand for bovine and ovine meats from Oceania and persistent demand for poultry globally, despite production challenges including avian influenza. Pig meat prices, however, saw a slight decrease due to oversupply issues in Western Europe and trade barriers.
Sugar: The Sugar Price Index edged up to 120.2 points, a 0.7% increase from June, though it remains significantly lower than last year's figures by 17.9%. This rise was mainly due to reduced sugar production in Brazil, which was not fully offset by better weather conditions in other major producing countries like India and Thailand.
The mixed price movements across these commodity groups highlight the complex interplay of global supply and demand dynamics influencing international food markets.
Vegetable Oils: Contrasting with cereals, the FAO Vegetable Oil Price Index climbed 2.4% to 135.0 points, marking the highest level in eighteen months. This rise reflects escalated global prices for palm, soy, sunflower, and rapeseed oils, driven by robust demand and challenging production outlooks in key producing nations.
Dairy Products: The Dairy Index remained stable at 127.7 points, nearly identical to last month but 7.2% higher than July 2023. Price adjustments within the sector saw declines in milk powders being nearly offset by increases in butter and cheese, attributed to tight supplies and strong domestic sales in Western Europe.
Meats: The Meat Price Index increased to 119.5 points, a 1.2% rise from June, with year-on-year figures showing a modest increase of 0.8%. Price movements in this category were influenced by strong import demand for bovine and ovine meats from Oceania and persistent demand for poultry globally, despite production challenges including avian influenza. Pig meat prices, however, saw a slight decrease due to oversupply issues in Western Europe and trade barriers.
Sugar: The Sugar Price Index edged up to 120.2 points, a 0.7% increase from June, though it remains significantly lower than last year's figures by 17.9%. This rise was mainly due to reduced sugar production in Brazil, which was not fully offset by better weather conditions in other major producing countries like India and Thailand.
The mixed price movements across these commodity groups highlight the complex interplay of global supply and demand dynamics influencing international food markets.
