The United Nations Food Agency on Thursday 6th August 2020 reported that the world food prices rose in July led by vegetable oils, Dairy Products and Sugar, extending a rebound from the previous Month following Sharp falls triggered by the Corona Virus Pandemic. The Global Food prices continued rising for the second consecutive month in July, led by Vegetable Oils and dairy Products as reported by the Food and Agriculture Organization (FAO). The Food and Agriculture Organization’s (FAO) Food Price Index, which measures the Monthly changes in the Food Prices for a basket of cereals, oilseeds, dairy products, Meat and the Sugar, averaged 94.2 points in July versus a slightly revised June figure of 93.1 points.
In the Report released by the Food and Agriculture Organization (FAO), the vegetable Oil Price Index increased by 7.6 percent since June to reach a Five-Month High with International quotations for the key oils rising amid, in the case of palm oil, likely production slowdowns, revived Global import Demand and protracted migrant labor shortages. Vegetable Oil Demand had been curbed earlier in the year by lockdown measures to counter the novel corona virus, dampening restaurant and the biofuel demand.
In Dairy Products, the prices rose last month as tracked by the Food and Agricultural Organization (FAO), helping the dairy price index rise 3.5% and climb back above the pre-pandemic levels. Milk powders rose due to strong import demand by the Asian Buyers amid concern about export availabilities in Oceania. Butter and cheese were supported by robust import demand but remained below pre-pandemic levels. The Average sugar prices rose 1.4 percent with support from rising energy prices and drought reduced production in Thailand, partly offset by strong sugar crush volumes in Brazil.
The meat index slipped 1.8 percent and was 9.2 percent below the year-earlier level, as global import demand continued to lag availability despite corona virus linked disruptions to slaughtering. The cereal index was almost unchanged with sharp gains for maize and sorghum linked to Chinese Purchases of Us suppliers offset by weaker rice quotations and stable wheat prices.
Pig and bovine meat quotations both fell in the Month as Global import demand volumes remained below export availabilities, despite the corona virus induced disruptions to the industry in the key exporting regions.
