International overview
The FAO Food Price Index was 13.1% higher in July 2022 compared to July 2021, but the index declined for the fourth consecutive month (decreasing by 8.6% from June 2022). This was driven by a significant decline in commodity prices
for vegetable oils and cereals, with less severe declines observed for sugar, dairy and meat. Declining commodity prices are mainly linked to the agreement between Ukraine and Russia to unblock Ukraine’s main ports in the Black
Sea, indicating the pending reopening of exports from Ukraine, combined with subdued demand from China. However, further declines in global commodity prices could be halted by uncertainty around weather conditions in the Northern
Hemisphere and we are expecting a tug-of-war between bearish and bullish factors for the next couple of months.
