On August 2nd the United Nations Food and Agricultural Organization released the Index of Food Commodities for July 2024. A sequential 12-month reduction in food prices is evidenced by the 3.1 point decrease in the Index from July 2023 to the most recent value of 120.8, marginally lower than the revised June 2024 value.
Components of the Index included:-
- The Cereal Index was down 4.4 points from June to 110.5 points due to lower corn and wheat prices.
- The Vegetable Oil Index in June was up 3.0 points from June to 135.0 points, an 18-month high, with higher prices for soy, sunflower and palm oils on increased demand and U.S. diversion of soybean oil to biodiesel.
- The Dairy Index was almost unchanged in June to 127.7 and down from 119.1 points in June 2023 on increased demand.
- The Meat index was up 1.5 points from June to 119.5 points with higher beef and mutton prices. A rise in red meat price was offset by decreases for chicken on oversupply in Western Europe but lower availability in North Africa and the Middle East due to HPAI.
Bountiful crops in Brazil and Argentina with restoration of Black Sea shipping using the ‘Humanitarian Corridor’ along the eastern seaaboard have collectively reduced concern over availability of grains and oilseeds and contributed to a moderation in prices for agronomic commodities.