1075. Global Food Price Trends for July 2024　

The Food and Agriculture Organization of the United Nations (FAO) released its global food price trends on August 2. The average value in July 2024 was 120.8 points, a slight decline from the previous month as the decline in the grain price index outpaced the increase in vegetable oil, meat, and sugar prices. This figure was 3.1% lower than the previous year and only 24.7% lower than the historic high of 160.3 points in March 2022.

The grain price index fell 3.8% month-on-month and 12.0% year-on-year to 110.8 points in July. Export prices of all major grains fell for the second consecutive month from the previous month. Seasonal supply increases due to winter wheat harvests in the Northern Hemisphere and favorable conditions in Canada and the United States have raised expectations for spring wheat measures, putting downward pressure on international wheat prices. Seasonal factors have also put downward pressure on maize, with harvests in Argentina and Brazil progressing at a better pace than last year, and growing conditions in the U.S. remaining above average compared to last year. The rice price index fell 2.4% in July, reflecting the fact that both Indica and Japonica rice traded calmly under price pressures.

Vegetable oil price indicators rose 2.4% month-on-month, the second consecutive month of increases, and reached a 1.5-year high. Palm oil, soybean, sunflower, and rapeseed also saw price indicators rise. This is due to a weaker-than-expected increase in production in Indonesia, the world's largest producer of palm oil, in contrast to strong global imports. On the other hand, soybean prices rose for the third consecutive month on the back of strong demand in the biofuels sector in the Americas, while sunflower and rapeseed prices reflected deteriorating crop conditions in major producers.

Contributor: IIYAMA Miyuki (Information Program)