FAO Food Price Index for July 2012. The FAO Cereal Price Index averaged 260 points in July, up 17 percent, or 38 points, from June. That was 14 points below its all-time high of 274 points in April 2008. FAORome, 9 August 2012 (FAO) – The FAO Food Price Index climbed 6 percent in July 2012 after three months of decline.

The Index, which measures  the monthly change in the international prices of a basket of food commodities, averaged 213 points, up 12 points from June. That was still well below the peak of 238 points reached in February 2011, however. The Index’s sharp rebound was mostly driven by a surge in grain and sugar prices. International prices of meat and dairy products were little changed. The FAO Cereal Price Index averaged 260 points in July, up 17 percent, or 38 points, from June. That was 14 points below its all-time high of 274 points in April 2008. The severe deterioration of maize crop prospects in the United States following extensive drought damage pushed up maize prices by almost 23 percent in July. International wheat quotations also surged 19 percent amid worsened production prospects in the Russian Federation and expectations of firm demand for wheat as feed because of tight maize supplies. However international rice prices remained mostly unchanged in July, with the FAO overall Rice Price index stable at 238, barely one point above June. July also saw a sharp increase in the FAO Sugar Price Index, which leaped 12 percent, or 34 points, from June to a new level of 324 points. The upturn, ending a steady fall since March, was triggered by untimely rains in Brazil, the world’s largest sugar exporter, which hampered sugarcane harvesting. Concerns over India’s delayed monsoon and poor rains in Australia also contributed. […]

FAO Food Price Index up 6 percent

The FAO Food Price Index (FFPI) averaged 213 points in July 2012, as much as 12 points (6 percent) up from June, but still well below the peak of 238 points reached in February 2011. The July surge of the Index followed three months of decline. The sharp rebound was mostly driven by a jump in grain and sugar prices, and more modest increases in oils/fats. International prices of meat and dairy products were little changed. The FAO Cereal Price Index averaged 260 points in July, up 38 points (17 percent) from June and only 14 points below its all-time high (in nominal terms) of 274 points registered in April 2008. The severe deterioration of maize crop prospects in the United States, following drought conditions and excessive heat during critical stages of the crop development, pushed up maize prices by almost 23 percent in July. International wheat quotations also surged (by 19 percent), amid a worsening of production prospects in the Russian Federation and expectations of a firm demand for wheat from the livestock sector for the second consecutive season because of tight maize supplies. By contrast, international rice prices remained mostly unchanged in July, with the FAO overall Rice Price index stable at 238, barely one point more than in June.

Unfavourable weather behind the July rebound of the FAO Food Price Index