The global benchmark for food prices remained stable in August, with the FAO Food Price Index (FFPI) averaging 130.1 points, only marginally above July’s 130.0. While cereal and dairy prices weakened, increases in meat, sugar, and vegetable oil quotations balanced the index. Year-on-year, the FFPI was 6.9 percent higher, though still 18.8 percent below its March 2022 peak.
Cereal prices eased, with the FAO Cereal Price Index averaging 105.6 points, down 0.8 percent from July. Wheat prices dropped on ample global supplies and subdued import demand, while maize rose for the third consecutive month amid heatwave concerns in the EU and rising feed and ethanol demand in the U.S. Rice prices fell 2 percent due to strong exporter competition.
The Vegetable Oil Price Index rose 1.4 percent to 169.1 points, its highest since July 2022. Palm oil prices climbed for the third month, supported by robust global demand and Indonesia’s upcoming biodiesel mandate. Sunflower and rapeseed oils also gained on tighter supplies in the Black Sea and Europe, while soyoil prices edged down on ample supply prospects.
Meat prices reached a record high, with the FAO Meat Price Index at 128.0 points, up 0.6 percent from July and 4.9 percent from a year earlier. Strong demand in the U.S. lifted bovine meat prices to a new peak, while Chinese demand kept Brazilian exports firm despite U.S. tariffs. Ovine prices rose for a fifth straight month amid tight Oceania supplies. Pig meat remained steady, while poultry declined due to abundant Brazilian exports and continued import restrictions despite avian influenza clearance.
The Dairy Price Index fell 1.3 percent to 152.6 points, marking a second consecutive monthly decline though remaining 16.2 percent higher year-on-year. Prices of butter, cheese, and whole milk powder eased due to strong output in New Zealand and the EU, alongside subdued Asian demand. Skim milk powder prices, however, rose on tight New Zealand supplies.
Meanwhile, the FAO Sugar Price Index edged up 0.2 percent to 103.6 points, snapping five months of decline. Concerns over Brazil’s reduced sugarcane yields and stronger import demand, especially from China, lifted prices, though expectations of larger harvests in India and Thailand capped the gains.