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FAO Food Price Index rises in July as cereal, oil prices increase

The FAO Food Price Index averaged 131.1 points in July, up 0.6% from June, with cereals up 3.4% month over month.

Reported · Written up by our desk · Agriculture

The global benchmark FAO Food Price Index edged higher in July, as gains in key food groups partially offset declines in others, according to the United Nations Food and Agriculture Organization (FAO). The index averaged 131.1 points in July, up 0.7 points or 0.6% from the prior month.

Cereal prices drove much of the increase. The FAO Cereal Price Index averaged 113.8 points in July, rising 3.8 points or 3.4% from June, and 7.3 points or 7% higher than a year earlier, with world wheat prices up 6%.

FAO linked wheat’s strength to heightened concerns about disruptions to Black Sea export flows and damage to export infrastructure tied to the Russia-Ukraine war, along with the impact of recent heatwaves on crop yields in some major producing countries. World maize prices also rose 3.6% from June, supported by worries about hot and dry weather in parts of the United States and spillover effects from firmer energy markets.

In vegetable oils, the FAO Vegetable Oil Price Index averaged 195.7 points in July, up 3.7 points or 2% month over month and at its highest level since June 2022. The FAO said higher palm and soy oil prices outweighed lower sunflower and rapeseed quotations, with palm oil gains tied to firm demand from Indonesia’s biodiesel sector and higher crude oil prices.

Latest closeWTI crude $78.07 ▲3.8%|Wheat $629.25 ▼2.0%

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