Unfavourable weather behind the July rebound of the FAO Food Price Index Release date: 09/08/2012 » 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.
Source: FAO World Food Situation, Unfavourable weather behind the July rebound of the FAO Food Price Index, August 9, 2012 http://www.fao.org/worldfoodsituation/wfs-home/foodpricesindex/en/