ROME, ITALY — Vegetable oils and dairy products buoyed global food commodity prices for the second straight month in July, according to the Food and Agriculture Organization of the United Nations (FAO).
The Food and Agriculture Organization's Food Price Index averaged 94.2 points in July, a 1.2% increase from June and nearly 1% higher than July 2019. The FAO Food Price Index tracks international prices of the most commonly traded food commodities.
The FAO’s Vegetable Oil Price Index reached a five-month high in July after it increased 7.6% compared to June. The FAO said the rebound in demand for vegetable oils led to the boost in prices.
The FAO Dairy Price Index rose 3.5% in the month, with all products from butter and cheese to milk powders rising.
The FAO Cereal Price Index remained steady in July and remained unchanged from June.
“Although maize and sorghum prices registered sharp increase, influenced by large purchases by China from the US, while those of rice fell, reflecting prospects of large 2020 harvests,” the FAO said. “Wheat prices changed little amid slow trade activity.”
The FAO Meat Price Index tumbled 1.8% in July, as global import demand for pig and bovine decreased. Yet, poultry meat prices increased due to Brazil decreasing production over high feed cost and future demand concerns.
The FAO Sugar Price Index rose 1.4% with increased crush margins working to alleviate rising energy prices in Brazil.