GLOBAL MARKET INFORMATION
The FAO Food Price Index averaged 94.2 points in July 2020, up 1.1 points from June. Rising for the second consecutive month, the July value is nearly 1 point below its level in the corresponding month last year. Since April 2020, global food price movements as captured by this index have been at their lowest in recent years; despite an uptick in the past 3 months, price levels still remain favourable compared to last year.
The FAO Cereal Price Index averaged 96.9 points in July, almost unchanged from June and up 0.4 points (0.4 percent) from the corresponding month last year. Maize prices registered sharp gains, primarily driven by recent large purchases by China from the US, as well as weather worries and the slide in the US dollar.
By contrast, prospects of large 2020 harvests and quiet market activities pushed down international rice prices to four -month lows, despite renewed concerns over logistical bottlenecks caused by COVID -19.