Global food prices dropped for a fifth-straight month after a seasonal rise in supplies took place and demand dropped for some products. The northern hemisphere wheat harvest is helping to ease supply concerns as more grain moves out of Ukraine.
A U.N. index of world food costs dropped 1.9 percent in August and remains at its lowest level since January. While consumers will feel some relief, the declines aren’t as sharp as they were in July, when food prices dropped the most since 2008.
Food prices do remain higher than last year. Food costs fell across the board last month, with vegetable oils dropping slightly below last year’s level. More palm oil supplies from Indonesia and seasonally rising outputs in southeast Asia helped to lower prices. Import demand for sunflower oil is subdued. Dairy stocks remained adequate. Major poultry importers reduced purchases, and domestic bovine meat demand in key exporters was weak.
The NAFB contributed to this report.
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National Correspondent / AgNet Media, Inc.
Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet Weekly podcast. Sabrina is a native of California’s agriculture-rich Central Valley.