The benchmark of world food commodity prices remained largely unchanged in August, as increases in meat, sugar and vegetable oil prices offset declines in cereal and dairy quotations, according to the new report released by the Food and Agriculture Organization of the United Nations (FAO) Friday.
The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 130.1 points in August, marginally up from the revised July level of 130.0 points and 6.9 percent higher than a year earlier.
The FAO Vegetable Oil Price Index increased by 1.4 percent in August from July, reaching its highest level in over three years. Palm, sunflower and rapeseed oil quotations all increased, partly influenced by Indonesia's intention to further raise its biodiesel blending mandate next year, while world soy oil prices edged lower amid prospects of ample global soybean supplies in the marketing year ahead.
The FAO Cereal Price Index declined by 0.8 percent from July. International wheat prices dropped, driven by larger harvests in the European Union and the Russian Federation, while world maize prices rose, due partly to increased demand for feed use and ethanol production in the United States of America. The FAO All Rice Price Index eased, weighed down by lower Indica prices amid continued fierce competition among exporters.
The FAO Meat Price Index increased by 0.6 percent in August, reaching a new all-time high, led by rising international bovine meat prices, underpinned by strong demand in the United States of America and robust import demand from China, which respectively boosted Australian and Brazilian export quotations. Ovine prices also rose, pig meat prices remained broadly stable, while poultry meat quotations declined amid ample exportable supplies from Brazil.
The FAO Dairy Price Index declined by 1.3 percent from July, with butter, cheese and whole milk powder quotations down amid subdued import demand from key Asian markets.
The FAO Sugar Price Index rose slightly, by 0.2 percent from July after five consecutive monthly declines, driven primarily by concerns over sugarcane production and yields in Brazil, as well as stronger global import demand. Prospects for larger crops in India and Thailand contained the price increase.
