FAO’s Food Price Index averaged 164.6 points in July, down 1% from June, and 19.4% from a year earlier.
The trade-weighted index tracks prices on international markets of five major food commodity groups: cereals, meat, dairy products, vegetable oils and sugar.
The July vegetable oil price index was 5.5% below its June level, reaching its lowest value since July 2009. The recent slide was primarily caused by a fall in international palm oil prices due to increased production in Southeast Asia combined with slower exports especially from Malaysia, and a further weakening of soy oil prices on ample supplies for export in South America and a favorable outlook for global supply in 2015-16.
The cereal price index rose by 2% from June, but was still 10.1% below July last year's level. For the second consecutive month, higher wheat and maize prices, in part due to unfavorable weather in North America and Europe, kept the cereal index rising, but rice prices continued to fall.
In July, the meat price index remained nearly unchanged from the previous month. An increase in international prices of bovine meat offset a decline for pig meat and ovine meat, while prices for poultry remained stable.