World: Food Prices Slow.

The FAO Food Price Index edged lower to 120.7 in August 2024, the lowest in three months, from an upwardly revised 121 in July. Cereal prices fell 0.5% to the lowest level since September 2020, mainly due to a drop in wheat export prices, reflecting a sluggish international demand and strong competition among exporters, especially from Black Sea supplies. Higher-than-previously-expected wheat production in Argentina and the US also contributed to the softer price tone. Sugar prices dropped 4.7% and reached their lowest since October 2022, amid an improving production outlook for the 2024/25 season in Thailand and India, following favourable rainfall. Also, meat cost decreased 0.7%. In contrast, prices for vegetable oils went up 0.8% as a rise in world palm oil more than offset lower soy, sunflower and rapeseed oil quotations. In addition, dairy prices rose 2.2%, led by whole milk powder due to a surge in import demand for spot supplies and tight inventories in major producing regions.