The UN Food and Agriculture Organization (FAO) released the July Food Price Index on October 5th.  The index averaged 140.9 points in July, down 30.3 points or 8.6 percent down from June representing the fourth consecutive monthly decline.  The drop was attributed to lower prices for vegetable oil and cereals with more stable prices for dairy and meat products.

The 19.1-point (11.5 percent) decline in the FAO Cereal Price Index was led by wheat that fell by 14.5 percent in July.  This was due to the agreement between Russia and Ukraine to allow passage of vessels carrying bulk agricultural cargo from Black Sea ports.  The price of corn also decreased by 10.7 percent on a World basis due to increased availability from Argentina and Brazil and as a secondary result of resumption of grain shipments from Ukraine.

The FAO Meat Price Index averaged 124.0 points in July down 0.6 points or 0.5 percent from June.  This was due to increased availability of beef and mutton from Australia and a reduction in beef price from the major producing nations. In contrast, international poultry meat reached an all-time high caused by outbreaks of avian influenza in many nations.