The Food and Agriculture Organization of the United Nations (FAO) said that global prices for agricultural food products fell sharply in July, as all major traded commodities noted a marked decline, led by dairy products and sugar.
According to the statement on its website, "FAO's food price index averaged 168.8 points, which is 3.7 percent lower than in June, which is the largest monthly decline since the end of last year. The index grew steadily in 2018 until June. "
The FAO dairy price index led to a decrease, down 6.6%, while oil and cheese prices fell faster than whole and low-fat milk powders. "The sugar price index in FAO fell 6 percent to almost a three-year low, mainly due to improved production prospects in India and Thailand, which are important sugar producing countries," the statement said.
Expectations of lower productivity in Brazil, the world's largest producer and export, limited the fall in world sugar prices. For grain, the price index fell by 3.6 percent from June and now below the level of the previous year. Export quotations for wheat, corn and rice all declined, although wheat and corn prices rose higher by the end of July.
The FAO vegetable oil price index was 2.9 percent lower, its sixth consecutive monthly decline and is now at the lowest level since January 2016, while the FAO meat price index fell by 1.9 percent compared to its June value. The FAO Food Price Index is a measure of the monthly change in world prices for a basket of goods.