Pia Bozyel – TURKISH JOURNAL – The Food and Agriculture Organization of the United Nations (FAO) reported that global food prices rose in July amid the impact of heat waves and geopolitical uncertainty.
Food
According to the FAO Food Price Index, prices of major food commodities rose globally in July.
FAO data showed that the price of the basket of major food commodities increased by 1 percent year-on-year in July.
The rise in food prices was driven by heat waves around the world, higher energy prices and continued geopolitical uncertainty.
Sugar prices rise 5.6 percent
Sugar was among the commodities that recorded the largest price increase in July.
Global sugar prices rose 5.6 percent in July from the previous month.
FAO said the increase was driven by concerns over the potential impact of continued hot and dry weather conditions in the European Union on crop yields, as well as the effects of El Niño-related weather conditions in major producing countries in Asia.
Grain prices also rose 3.4 percent month-on-month in July, following declines recorded in June. Grain prices were consequently 6.9 percent higher than their level in July last year.
Rice prices remained largely stable in July, while global wheat prices increased by 5.8 percent.
The rise in wheat prices was attributed in part to continued disruptions to grain exports in the Black Sea due to the Russia-Ukraine war, as well as concerns that recent heat waves could negatively affect crop yields in some countries.
Corn prices also increased by 3.6 percent in July. FAO said concerns over hot and dry weather conditions in parts of the United States, along with rising energy prices resulting from heightened geopolitical tensions, contributed to the increase in corn prices.
Vegetable oil prices reach highest level since 2022
FAO’s vegetable oil price index also rose 2 percent in July, reaching its highest level since June 2022.
The increase was driven by demand from Indonesia’s biodiesel sector and higher crude oil prices.
Soybean oil prices rose amid strong demand for feedstock in the United States, while global sunflower oil and rapeseed oil prices declined.
FAO highlighted that heat waves and El Niño were increasing pressure on agricultural production, while emphasizing that wars and geopolitical developments were also adding to uncertainty in energy and food markets.
