After three months on an upward trajectory, the FAO Food Price Index moved lower in August 2017. The Index declined 2.3 points (1.3%) from July 2017, to average 176.6 points in August 2017 – underpinned by lower cereal, sugar and meat values. Nevertheless, the Index remained 10 points (6%) higher than where it was the same time in 2016.
The Meat Price Index averaged 172.4 points for August 2017– down 2.1 points (1.2%) from July 2017. The Index now sits 18.7% below where it peaked in August 2014. International bovine prices drove the overall decline for August 2017, while pig, ovine and poultry meat prices were stable. FAO report that bovine values moved lower on account of increased export supplies from Australia and rising production in the US. Robust import demand was reported for ovine, pig and poultry meat, although supplies from key producing regions were adequate, which saw prices remain largely unchanged.
Cereal and sugar prices eased in August 2017 due to increased global production, while dairy and vegetable oil values registered an increase for August 2017 – underpinned by reduced export supplies.