Global food prices fall further; Ukraine wheat shipment takes pressure off

Global food prices fall further; Ukraine wheat shipment takes pressure off

The United Nations food agency's world commodity price index declined for the fourth consecutive month in July since hitting all-time highs earlier in the year, bringing some relief to parts of the globe that are facing severe food crisis.

However, prices remained 13% higher than in July 2021, as the Russian invasion of Ukraine, which is a major exporter of sunflower oil, maize, barley and wheat, led prices to spike.

The Food and Agriculture Organization's (FAO) index, which tracks the most globally traded food commodities, averaged 140.9 points last month versus a revised 154.3 in June.

“The decline in food commodity prices from very high levels is welcome, especially when seen from a food access viewpoint; however, many uncertainties remain, including high fertilizer prices that can impact future production prospects and farmers’ livelihoods, a bleak global economic outlook and currency movements, all of which pose serious strains for global food security,” said FAO Chief Economist Maximo Torero.

Low-to-middle income sovereigns in the Middle East and Africa region will be among the worst hit by rising food prices and supply shortages that could last through 2024, according to a recent report from S&P. They include Morocco, Lebanon, Egypt and Jordan, which rely on Ukraine for