FAO: Global Food Prices Remained Stable in August

Despite relative stability, the index is 6.9% higher than in August 2024, but remains 18.8% below the March 2022 record.

Grains

The grain price index decreased by 0.8% compared to July and by 4.1% year-on-year. Global wheat prices fell due to high yields in the EU and Russia, as well as weak import demand from major buyers in Asia and North Africa. Meanwhile, corn prices rose due to concerns about heat in the EU and high demand for feed and ethanol in the US.

Vegetable Oils

The index rose by 1.4% to the highest level since July 2022. The price increase affected palm, sunflower, and rapeseed oils. Demand for palm oil was supported by global purchases and Indonesia's plans to increase the share of biodiesel in fuel blends by 2026. Sunflower and rapeseed oils became more expensive due to reduced supply in the Black Sea region and Europe. In contrast, soybean oil prices fell thanks to good crop prospects.

Meat

Meat prices rose by 0.6% for the month and by 4.9% year-on-year. Beef reached record levels as strong demand from the US boosted prices in Australia, and China supported Brazil's export quotes. Pork prices remained stable, while poultry meat became cheaper due to increased exports from Brazil.

Dairy Products

The dairy price index fell by 1.3% compared to July but was 16.2% higher than in August last year. The pressure came from the cheaper prices of butter, cheese, and whole milk powder, which outweighed the rise in skimmed milk powder prices.

Sugar

After five months of decline, the sugar price index rose by 0.2% in August but remained 9% below last year's level. The growth drivers were the reduced yield of sugarcane in Brazil and increased import demand, especially from China.