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As of Jul, world food prices declined just slightly
02.08.2019 16:24 "Agro Perspectiva" (Kyiv) —
As of this year Jul, global food prices have slightly declined, led by some grains, dairy products and sugar prices’ drop, more than offsetting firmer prices for meat and vegetable oils, FAO reports referring to the latest FAO Food Price Index.
As to the report, the Index, which tracks monthly changes of the international prices of commonly traded food goods, averaged 170.9 points within this year Jul, down 1.1% against this year Jun, but up 2.3% against last year Jul.
As to the report, as of this year Jul, the FAO Grains Price Index dropped by 2.7% against this year Jun (but 4.1% up against last year Jul). The grains drop was mainly driven by a slide in wheat and maize prices, reflecting, among others, ample export shipments. By contrast, the rice index marked its fifth successive month of stability amid generally quiet market activity.
As to the report, as of this year Jul, the FAO Vegetable Oil Price Index rose by 0.8% (led by firmer soyoil and sunflower oil prices that balanced out a further drop in palm oil price).
Besides, as of this year Jul, the FAO Meat Price Index posted a 0.6% boost against this year Jun, marking its sixth month-on-month price growth.
It is to be admitted, the ovine and bovine meat prices rose further within this year Jul, supported by robust import demand from Asia and weakening shipments from Oceania due to a seasonal decline. On the other hand, prices for pigmeat dropped slightly after four months of continued growth, reflecting larger export availabilities from Brazil and the US.
In meanwhile, this year Jul FAO Dairy Price Index declined by 2.9% against this year Jun, representing the second consecutive monthly drop, led by a decline of butter quotations followed by cheese and whole milk powder.
Besides, as of this year Jul, the FAO Sugar Price Index declined by 0.6% as of this year Jun, mainly driven by expectations of higher sugarcane yields within India (world largest sugar producer). It is to be admitted, the world sugar prices’ decline was partially contained by a strengthening of the Brazilian Real against the US$, a move that tends to restrain exports from Brazil (world largest sugar exporter).
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