Global food commodity prices decline in July: FAO

The benchmark for world food commodity prices declined significantly in July, with major cereal and vegetable oil prices recording double-digit percentage declines, the Food and Agriculture Organisation of the United Nations (FAO) reported on Friday. The closely-watched FAO Food Price Index averaged 140.9 points in July, down 8.6 per cent from June, marking the fourth consecutive monthly decline since hitting all-time highs earlier in the year. The Index, which tracks monthly changes in the international prices of a basket of commonly-traded food commodities, nevertheless, remained 13.1 per cent higher than in July 2021. “The decline in food commodity prices from very high levels is welcome, especially when seen from a food access viewpoint; however, many uncertainties remain, including high fertiliser prices that can impact future production prospects and farmers’ livelihoods, a bleak global economic outlook, and currency movements, all of which pose serious strains for global food security,” said FAO Chief Economist Maximo Torero.