Global food commodity prices rose in July, with sharp gains in vegetable oils and meat pushing the FAO Food Price Index to an average of 130.1 points, up 1.6% from June.
The index, compiled by the UN Food and Agriculture Organization (FAO) and released Friday, remains 18.8% below its March 2022 peak but is 7.6% higher than a year ago.
The monthly increase was driven by a three-year high in vegetable oil prices and a record-setting high for meat, more than offsetting declines in cereals, dairy, and sugar.
The FAO Vegetable Oil Price Index surged 7.1% in July to 166.8 points, marking its strongest level since mid-2022. Palm oil led the charge, buoyed by strong global demand and improved price competitiveness. Soy oil prices climbed on expectations of firm biofuel demand in the Americas, while sunflower oil rose amid tightening Black Sea export supplies. Rapeseed oil was the only exception, slipping as new European harvests came to market.
The FAO Meat Price Index rose 1.2% to 127.3 points, setting a new all-time high. Beef and sheep meat prices climbed on strong import demand from China and the United States. Poultry prices also gained slightly following Brazil’s return to avian influenza-free status, prompting resumed shipments to key buyers. In contrast, pork prices fell due to ample supplies and weaker demand, particularly in the European Union.
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