Ukraine wheat exports resume. Global food prices drop sharply in 24 years
The U.N. Food and Agriculture Organization's monthly food index fell to its highest level in 24 years last month. As Ukraine resumed grain exports through the Black Sea port. In addition to wheat, overall demand for food imports has also decreased.
The Ministry of Agriculture, Food and Rural Affairs announced on the 6th that the World Food Price Index fell 8.6% from the previous month to 140.9 points in July this year.
Since 1996, the FAO monitors international price trends for 24 items and publishes a monthly food price index by five item groups, including grains, oils, meat, dairy products, and sugar.
The index soared to an all-time high of 159.7 in March shortly after the outbreak of the Russian-Ukraine war and fell little by little for three consecutive months until June.
In July, the price index of all five items fell, marking the largest monthly decline since October 2008.
By item, the grain price index fell 11.5% from the previous month. The sharp drop in international wheat prices due to the agreement to lift the blockade of the Black Sea port and the progress of harvesting in the northern hemisphere led to the overall fall in grain prices.
The oil and oil index fell 19.2 percent. Palm oil is expected to have sufficient supply capacity for Indonesia, the largest exporter, while soybean oil prices fell respectively as demand continued to be low and rape seeds were expected to have sufficient supply of new yields.
The meat index fell 0.5 percent from the previous month. In the case of beef, prices fell due to the increased export capacity of major producers, and pork prices fell due to low overall import demand.
On the other hand, poultry meat prices have risen significantly due to strong demand for imports and the outbreak of avian influenza in the northern hemisphere.
The Ministry of Agriculture, Food and Rural Affairs said, "The crop conditions in major exporting countries have been improving recently, and international grain prices have been stable since June due to the possibility of falling consumption due to the global economic recession."
"The domestic milling, feed, starch, and soybean processing industries are stocking up on supplies used from October to November this year," he said. "The industry believes that the short-term supply and demand problems are not large, but it is necessary to keep an eye on the crops of major exporters."