Sunflower and rapeseed oil and palm oil are getting cheaper, only soybeans are getting more expensive
Global food prices continued to decline in August for the fifth month in a row, with vegetable oils falling even below their August 2021 levels, the Food and Agriculture Organization of the United Nations (FAO) said, as quoted by AFP.
The FAO food index, which tracks changes in international prices of a basket of staples, has steadily declined since the all-time high reached in March following Russia’s invasion of Ukraine. In August, the decline was more moderate – by 1.9 percent on a monthly basis.
The price index for the world’s most sold food products reached 138 points last month, compared to 140.7 in July, according to Reuters. The initial reading for July was 140.9. The index is down from a record high of 159.7 in March.
The vegetable oil price index fell 3.3 percent in August, reaching a slightly lower level than in August 2021. Sunflower and canola oil and palm oil fell, with only soybeans rising modestly on worries about the impact of adverse weather conditions on production in the United States, the organization emphasizes.
The FAO Cereals Index fell 1.4 percent for the month, driven by a 5.1 percent drop in international wheat prices, reflecting improved production prospects in North America and Russia, as well as a resumption of exports from Black Sea ports in Ukraine.
According to a separate assessment of grain supply and demand, the FAO lowered its forecast for world cereal production in 2022 to 2.774 billion tonnes from the 2.792 billion tonnes announced in early July.