PARIS: World food prices rose in July led by vegetable oils, dairy products and sugar, extending a rebound from the previous month following sharp falls triggered by the coronavirus pandemic, the United Nations food agency said on Thursday. The Food and Agriculture Organization's food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 94.2 points in July versus a slightly revised June figure of 93.1 points.
"Similar to June, further increases in the prices of vegetable oils, dairy products and sugar outweighed lower prices in the meat markets amid overall steady value of the cereal price index," the FAO said in a statement.
The agency's vegetable oil price index climbed 7.6% in July to reach a five-month high. Palm oil was buoyed by expected production slowdowns, revived global demand and protracted migrant labour shortages, while soyoil and rapeseed oil were underpinned, respectively, by tightening supply in Brazil and fresh demand in Europe, it said.
Vegetable oil demand had been curbed earlier in the year by lockdown measures to counter the novel coronavirus, dampening restaurant and biofuel demand. In dairy, all products tracked by the FAO rose last month, helping the dairy price index rise 3.5% and climb back above the pre-pandemic level, the agency said.
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