World food prices remain steady in August - FAO

Global dairy prices increased while sugar prices declined in August, leaving the United Nations Food and Agriculture Organization (FAO) Food Price Index virtually unchanged, compared to the previous month.

FAO reported Friday that the dairy sub-index was 2.2 percent higher on average in August than in July, and 14.2 percent above its levels from a year earlier.

The rise is due to higher import demand, and a lack of inventories in the main dairy-producing countries in Europe and Oceania, with prices for butter gaining the most and reaching an all-time high.

Sugar prices, meanwhile, headed in the opposite direction, falling 4.7 percent compared to their levels in July, which is at its lowest level since October 2022. FAO said that the reason is the strong outlooks for production in India and Thailand, and the lower fuel prices as sugar uses substantial energy to cultivate and harvest.

Other sub-indexes saw smaller movements and the overall index was registered at 120.7, almost unchanged compared to July, though it was 1.1 percent below its level from a year earlier.

The prices of grains and cereals — the largest component in the overall index — edged 0.5 percent lower in August, said FAO, and the main reasons are wheat prices falling due to sluggish demand, and strong production in Argentina and the United States.