The July FAO Food Price Index fell by 1.3 points following five consecutive months of increases. The slightly drop in July was driven mostly by lower international quotations of grains and vegetable oils.
The July Cereal Price Index also fell in July by 8.8 points; cereal prices are 11 percent below their July 2015 levels. Maize prices dropped most sharply in July following favorable weather conditions in the United States. Lower wheat prices were driven by large global supplies and abundant export prospects from the Black Sea region. Rice prices, on the other hand, rose in July due to lower availability of several varieties.
The Vegetable Oil Price Index dropped 4.6 points from June, driven mainly by palm oil prices falling to a five-month low. Soybean oil prices also fell due to improved supply prospects.
By contrast, the Dairy, Meat, and Sugar Indices all rose in July. Dairy prices remain at very low levels compared to recent years, however, and global demand remains low. Increased meat prices were driven mainly by limited availability of pig meat and by steady global demand, particularly from China and other Asian countries. A strengthening of the Brazilian Real impacted global sugar prices.