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FAO food price index climbs nearly 2% in August
The FAO Food Price Index averaged 133.3 points in August, up 2.5 points from a revised July level.
World Grain reports that the UN Food and Agriculture Organization said its benchmark global food commodity index rose by nearly 2% in August, with every major commodity group posting higher price indices than the prior month.
The FAO Food Price Index averaged 133.3 points in August, up 2.5 points from the revised July level. On a year-over-year basis, the index was up 2.5%, or 3.3 points, but still 26.9 points, or 17%, below the peak it hit in March 2022.
According to the report, the Cereal Price Index reached its highest level since May 2024, averaging 116.3 points in August, up 2.5 points (2.2%) from July. The FAO attributed the gains to robust demand, weather related concerns for crop prospects in key producing regions, and ongoing uncertainty around Black Sea export flows.
World wheat prices increased 2.6% month on month, while international maize prices rose 2.5% and were supported by concerns over US Corn Belt yield prospects and deteriorating conditions in parts of the European Union due to heat and dryness. The FAO also cited disruptions to Ukrainian export flows, strong ethanol and feed demand, and additional support from input supply concerns after the closure of the Strait of Hormuz.
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