Food and Agriculture Organization of the United Nations: Meat and edible oil prices are rising, with global food prices reaching a two-year high.

The Food and Agriculture Organization of the United Nations (FAO) has stated that global food commodity prices reached a two-year high in July. Despite the decline in prices of grains, dairy products, and sugar, a sharp increase in vegetable oil prices and a record high in meat prices have driven the overall food price index upwards. The FAO has reported that the FAO Food Price Index, which serves as a global benchmark for food commodity prices, averaged 130.1 points in July, an increase of 1.6% from June. This value is the highest since February 2023, but still 18.8% lower than the peak in March 2022 (after the Russia-Ukraine conflict). The FAO Meat Price Index reached a historical high of 127.3 points, up 1.2% from the previous peak in June. The organization stated that strong import demand from China and the United States has driven up beef and lamb prices. Drought in the United States has led to a decrease in domestic cattle herds, resulting in an increase in beef imports; China saw record beef imports last year, but investigations into imported beef have brought uncertainty to Chinese demand. In other meat markets, after Brazil experienced an outbreak of avian influenza on farms for the first time, and then regained "avian influenza-free" certification through control measures, major buyers have resumed importing Brazilian chicken, leading to a slight increase in poultry prices. The FAO added that, in contrast, pork prices have slightly decreased due to ample supply and declining demand, especially in the European Union region. The FAO Vegetable Oil Price Index surged to 166.8 points, a 7.1% increase from the previous month, reaching the highest level in three years. The organization explained that strong global demand and tight supplies have driven up prices of palm oil, soybean oil, and sunflower seed oil, while rapeseed oil prices have fallen with the availability of new season oilseed in Europe. Due to seasonal supply pressure from Northern Hemisphere wheat harvests, the FAO grain price benchmark has dropped to its lowest level in nearly five years. The FAO Rice Index fell by 1.8% last month, mainly due to ample export supplies and weak import demand. Dairy prices have seen a slight decline for the first time since April 2024, as decreases in butter and milk powder prices offset further increases in cheese prices. The FAO stated that despite signs of a recovery in global sugar import demand, the FAO Sugar Price Index has fallen for the fifth consecutive month due to expected increases in production in Brazil and India. This month, the FAO did not update its estimates for grain supply and demand.