FAO Food Price Index, 2007-August 2011. fao.orgSeptember 8 (FAO) – The FAO Food Price Index (FFPI) averaged 231 points in August 2011, nearly unchanged from July and 26 percent higher than in August 2010. The FFPI hit its all time high of 238 points in February.  Firmer cereal prices in August were largely offset by declines in international prices of most other commodities included in the Index, the oils and dairy in particular.

» The FAO Cereal Price Index averaged 253 points in August, up 2.2 percent, or 5 points, from July and 36 percent higher than in August 2010. The rise in international prices of rice and maize was the main reason for the August rise in the Cereal Price Index. The rice index gained 4 percent while coarse grains rose by 2.9 percent in August.  A policy change in Thailand, the world’s largest rice exporter, which is set to increase the purchasing price from farmers to above market levels, served to further support this increase. Maize prices also rose sharply in August, reflecting further deterioration in this year’s crop prospects in the United States.  » The FAO Oils/Fats Price Index averaged 244 points in August, following a declining trend since March but still remaining high in historical terms. The contraction in the index was driven primarily by the recent increase in the global production and export supplies of both palm and sunflower oil. With regard to soyoil, although unfavourable weather has affected the US soy crop prospect, larger than expected soybean stocks held by major exporters prevented prices from rising sharply. » The FAO Dairy Price Index averaged 221 points in August, significantly down from 228 points in July and 232 points in June but still 14 percent higher than the same period last year. Downward movements in milk powder and casein prices, both of which dropped by 6 percent between July and August, were the main drivers behind this decline , which was largely triggered by the strength of the New Zealand Dollar. Butter and cheese values also fell, by 4 and 1 percent respectively. » The FAO Meat Price Index averaged 181 points in August, up 1 percent from July. Bovine prices have risen since June, reaching new highs in August, while poultry meat prices fell sharply in August, reflecting a 7 percent contraction of Brazilian chicken meat export prices. Average international pig meat prices remained stable, albeit at high levels. » The FAO Sugar Price Index averaged 394 points in August, down 2 percent from July, but still 50 percent higher than in August 2010. Positive production prospects for Europe, India, and Thailand contributed to the easing in prices. However, indications of lower production in Brazil, the world’s largest sugar producer, which is forecast to fall below last year’s level, continued to put some upward pressure on prices.

FAO Food Price Index remains high and above last year’s level