The index maintains its downward trend since record of 159.7 registered in March after Russia’s invasion of Ukraine.
The drop in food prices worldwide responds to the resumption of grain exports from Ukrainian ports of the Black Sea, thanks to a diplomatic agreement, contributed to improve the supply prospects. Favorable prospects for the wheat harvest in the United States and Russia will also contribute.
The price index of corn It rose 1.5% from last month as hot, dry weather dampened production prospects in Europe and the United States.
The price indices of vegetable oil, sugar, dairy products and meat fellpartly as a consequence of the improvement in supply.
In addition, the FAO lowered its forecast for global grain production in 2022 to 2,774 million tonnes, compared to a previous projection of 2.792 million in early July. This figure is a 1.4% lower than the estimated production for 2021. This reduction is due to the prospects for the northern hemisphere due to weather conditions. In particular, those of the European Union that contracted 16% below their five-year average.
However, it is expected that the world cereal use in 2022/23 exceeds productionwith 2,792 million tonnes demanded, leading to an expected 2.1% decline in global reserves compared to 2021/22, to 845 million tonnes.
In the case of Argentinathe consultants’ projection places food prices with a monthly rise between 6.4% and 7.5%.
Source: Ambito
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