World food prices show decline for the fourth month in a row
Meanwhile, they remain substantially higher than last year.
World food prices in July decreased by 8.6% compared to the previous month. This is the sharpest decline since October 2008, says the FAO (Food and Agriculture Organization of the United Nations).
Prices have been declining for the fourth month in a row after the all-time high recorded in March.
The grain price index in July fell by 11.5% compared to June. However, it is 16.6% higher than in July 2021. The price reduction was facilitated by the agreements reached between Russia and Ukraine, mediated by the UN and Turkey, on resuming the export of Ukrainian grain through ports on the Black Sea. In early August, the first ships with food left the Ukrainian ports. It should be noted that Ukraine, along with Russia, is one of the largest grain exporters in the world.
In addition, the beginning of harvesting in the Northern Hemisphere affected the cost of grain. It is worth noting that international wheat prices are still 24.8% higher than in July last year.
Former Minister of Agriculture of the Russian Federation Dmitry Patrushev statedthat this year Russia is harvesting less than in the past, and the harvesting campaign in some regions is hindered by heavy rainfall. Patrushev noted that the target for a grain harvest of 130 million tons this season may not be reached, but the Russian market will be fully provided with it. If the planned crop volumes are not collected, Russia will revise its export plans of 50 million tons, he said. According to the minister, this may have a negative impact on the world grain market.
