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Global food prices rise in July

06.08.2020 15:10 "Agro Perspectiva" (Kyiv) Global food prices continued rising for the second consecutive month in July, led by vegetable oils and dairy products, according to the benchmark United Nations report.

The Food and Agriculture Organizations Food Price Index averaged 94.2points in July, a 1.2percent increase from June and nearly 1.0percent higher than July 2019. The FAO Food Price Index tracks international prices of the most commonly traded food commodities.

The FAO Vegetable Oil Price Index increased 7.6percent 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.

The FAO Dairy Price Index rose 3.5percent in the month, with all products from butter and cheese to milk powders rising.

The FAO Cereal Price Index was practically unchanged from June, although maize and sorghum prices registered sharp increase- influenced by large purchases by China from the United States of America- while those of rice fell, reflecting prospects of large 2020harvests. Wheat prices changed little amid slow trade activity.

The FAO Sugar Price Index rose 1.4percent, as strong sugar crush numbers from Brazil only partly mitigated the effects of rising energy prices and the prospects of lower sugar production in Thailand due to a severe drought.

The FAO Meat Price Index, in contrast, declined by 1.8percent in July and averaged 9.2percent below its level of July 2019. Pig and bovine meat quotations both fell in the month as global import demand volumes remained below export availabilities, despite the coronavirus-induced disruptions to the industry in key exporting regions. Poultry meat prices increased, influenced by production cuts in Brazil triggered by high feed costs and concerns over future demand.

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