World meals commodity worths rose in July to their highest in over two years, as a leap for vegetable oils and document ranges for meat outweighed falling cereal, dairy and sugar worths, the United Nations’ Meals and Agriculture Organisation stated.
The FAO Meals Worth Index, which serves as a world benchmark for meals commodity worths, averaged 130.1 factors in July, a 1.6% improve from June, FAO stated.
That was the very best studying since February 2023, although the index was 18.8% under its peak of March 2022, which adopted Russia’s full-scale invasion of Ukraine.
Meat Costs
FAO’s meat worth index hit a brand new all-time excessive of 127.3 factors, up 1.2% from its earlier peak in June, as sturdy import demand from China and the USA boosted beef and sheep meat worths, the company stated.
US beef imports have climbed after drought led to a decline within the home cattle herd. China shipped in document quantities of beef final 12 months amid rising recognition of the meat, although an official probe into imported beef has raised uncertainty about Chinese language demand.
In different meat markets, poultry worths rose barely following the resumption of imports of Brazilian hen by main consumers after Brazil regained its avian influenza-free standing following motion in opposition to a primary farm-level outbreak.
In distinction, pig meat worths declined attributable to ample provides and decrease demand, notably within the European Union, FAO added.
Different Commodities
The company’s vegetable oil index surged to 166.8 factors, up 7.1% month-on-month and the very best degree in three years.
This improve was pushed by larger quotations for palm, soy, and sunflower oils attributable to sturdy international demand and tightening provides, although rapeseed oil worths fell as new-crop provides arrived in Europe, FAO stated.
FAO’s cereal worth benchmark eased to its lowest in virtually 5 years, reflecting seasonal provide strain from wheat harvests within the Northern Hemisphere.
Its separate rice index dropped 1.8% final month, pushed by ample export provides and weak import demand.
Dairy worths edged down for the primary time since April 2024, with declines for butter and milk powders offsetting additional good points for cheese.
FAO’s sugar worth index eased for a fifth consecutive month on expectations of elevated manufacturing in Brazil and India, regardless of indications of recovering international sugar import demand, the company stated.
FAO didn’t replace its cereal provide and demand estimates this month.
