Rome, September 6 (FinanceFlashNews) – Global food prices saw a slight decline in August 2024, according to the UN Food and Agriculture Organization (FAO). The FAO food price index, which tracks monthly changes in the prices of cereals, oilseeds, dairy products, meat, and sugar, dropped to 120.7 points from a revised 121 points in July.
The decrease was driven by lower prices for sugar, meat, and cereals, which outweighed price increases for vegetable oils and dairy products. The cereal price index fell by 0.5% due to lower global wheat export prices, aided by competitive Black Sea supplies and higher production in Argentina and the United States. On the other hand, the FAO vegetable oil price index rose by 0.8%, hitting a 20-month high, largely due to rising palm oil prices.
FAO also revised down its forecast for global grain production in 2024 by 2.8 million metric tons to 2.851 billion tons, almost identical to last year’s output. This reduction is attributed to lower expected harvests caused by heatwaves and droughts in Europe, Mexico, and Ukraine. However, FAO raised its projections for wheat production and the forecast for rice production, which is expected to hit a record 537 million tons.
Key Price and Production Changes:
| Commodity | Month-on-Month Change (%) | Change from March 2022 Peak (%) |
|---|---|---|
| Overall Food Prices | -0.2 | -24.7 |
| Cereal Prices | -0.5 | N/A |
| Meat Prices | -0.7 | N/A |
| Sugar Prices | -4.7 | N/A |
| Vegetable Oil Prices | +0.8 | 20-month high |
| Dairy Prices | +2.2 | N/A |
| Global Grain Production | N/A | 2.851 billion tons |
| Expected Rice Production | N/A | 537 million tons |
Keywords: FAO, food prices, cereals, vegetable oils, dairy products, global production, wheat, rice
