The Global Food Price Index of the Food and Agriculture Organization (FAO) of the United Nations rose in July from its lowest levels in two years, driven by a rebound in vegetable oil markets amid renewed tensions regarding grain exports from Ukraine and concerns over global production. The organization reported today, Friday, that "its index, which tracks the prices of the most traded food commodities worldwide, averaged 123.9 points in July, compared to a revised 122.4 points the previous month."
It clarified that "its vegetable oils price index jumped by 12 percent compared to June after seven consecutive monthly declines." It added, "The price of sunflower oil increased by more than 15 percent month-on-month, primarily due to uncertainty stemming from Russia's withdrawal from the Black Sea Grain Initiative. Production concerns and rising crude oil prices also contributed to the increase in the prices of other vegetable oils."
The June reading was initially at 122.3, which was the lowest for the index since April 2021. The July reading is nearly 12 percent lower than it was a year ago and 22 percent lower than its all-time high in March 2022, following the start of the Russian attack on Ukraine.
