The FAO Food Price Index declined 2.1% to 121.4 points in August 2023, the lowest since April 2021, reversing the 1% gain seen in July, and pushing the index 24% below its peak reached in March 2022. Declines were seen in dairy products (-4%), the eighth consecutive fall, led by whole milk powder amid abundant supplies especially from Oceania amid seasonally rising production, and a slowdown in imports by China. Cost for vegetable oils dropped 3.1% due to lower world prices across palm, sunflower, soy and rapeseed oils. Prices of meat decreased 3%, with the steepest drop registered for ovine meat, due to a surge in export availabilities, mainly from Australia, and weaker demand from China. Also, the cost of cereals edged 0.7% lower, with wheat prices falling 3.8% amid higher seasonal availability from ongoing harvests in the northern hemisphere. On the other hand, sugar prices were up 1.3% due to concerns over the impact of the El Niño weather phenomenon on global production prospects.
