The United Nations world food price index eased slightly in July according to the latest data, with a decline in the index for cereals offset in part by increases for meat, vegetable oils and sugar.
The UN Food and Agriculture Organisation's price index, which tracks the most globally traded food commodities, averaged 120.8 points in July, down from 121.0 in June. The June reading was revised after initially being given as 120.6.
The FAO Cereals Price Index declined 3.8% to its lowest level in nearly four years with global export prices for all major cereals falling for the second consecutive month.
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Wheat prices fell on seasonal availability from ongoing winter wheat harvests in the northern hemisphere and favourable conditions for spring wheat crops in Canada and the US, the FAO said.
"Maize (corn) export prices also declined as harvests in Argentina and Brazil progressed ahead of last year’s pace and crop conditions in the United States remained robust," the report added.
Prior to July, the FAO food price index had risen for four consecutive months after hitting a three-year low in February as food prices receded from a record peak set in March 2022, following Russia's invasion of fellow crop export major Ukraine.
The July value was 3.1% down on its level one year ago and 24.7% below its 2022 high point.
Elsewhere, slack early-season demand for European Union wheat, as cheaper Russian and Ukrainian supplies rack up sales, has some traders worried that the EU is falling too far behind in exports even if its surplus is set to be cut by a rain-hit harvest.
