LONDON (Reuters) – The benchmark global food price index calculated by the United Nations Food and Agriculture Organization (FAO) fell again in July, moving away from record highs set in March.
It averaged 140.9 points in July, compared to a revised figure of 154.3 in June.
However, the July index remains 13.1% higher than the previous year, due to the invasion of Ukraine, unfavorable weather conditions and high production and transport costs.
“The fall in food prices, which had reached very high levels, is positive, especially from the point of view of access to food; however, many uncertainties remain,” said Maximo Torero, Chief Economist of FAO.
A lackluster global economic outlook, fluctuating exchange rates and high fertilizer prices are all factors that are jeopardizing global food security, he added.
Price indices for vegetable oil, sugar, dairy, meat and grains all fell month-on-month in July, with wheat falling 14.5%, partly due to an agreement between Ukraine, Russia, Turkey and the United Nations to unblock grain exports from Black Sea ports.
The corn price index fell 10.7% in July, also due to the agreement between Russia and Ukraine as well as increased seasonal supplies from major producers Argentina and Brazil , according to the FAO.
Three ships carrying a total of 58,041 tons of corn were allowed to leave Ukrainian ports on Friday, according to the organization that planned the operation. A first ship carrying Ukrainian grain left Odessa on Monday.
(Report Maytaal Angel, French version Augustin Turpin, edited by Jean-Stéphane Brosse)