FAO: Global food prices rose in July

The world price index of the Food and Agriculture Organization (FAO) of the United Nations rose in July from its lowest level in two years as vegetable oil markets rallied after renewed tensions over grain exports from Ukraine and concerns about global production.

According to Reuters, the organization said today, Friday, that its index, which tracks the prices of the most traded food commodities globally, averaged 123.9 points in July, compared to 122.4 points after adjustment in the previous month.

The June reading was initially 122.3, which is the lowest for the index since April 2021.

The July reading was almost 12% lower than it was a year ago and 22% lower than the all-time high in March 2022 after the Russian invasion of Ukraine began.

The agency said that its vegetable oil price index jumped 12% compared to June, after seven consecutive monthly declines.

It added that sunflower oil rose by more than 15% on a monthly basis, mainly due to the uncertainty caused by Russia’s decision to withdraw from the Black Sea Grain Initiative.

Production concerns and high crude oil prices also led to a rise in the prices of other vegetable oils.