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FAO: Ukrainian grains are back on the global market;



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The global food price index fell in August for the fifth consecutive month, falling further from the all-time high reached in March, as the resumption of Ukrainian grain exports helped to improve the supply outlook, the United Nations Food and Agriculture Organization announced on Friday. (FAO), quoted by the Reuters agency.

The FAO publishes its own Food Price Index every month, which measures price changes in a food basket made up of cereals, vegetable oils, dairy, meat and sugar.

In August, this index fell to 138 points, compared to the revised value of 140.7 points reached in July. Even after falling for five months, the FAO index is currently 7.9% higher than it was in August 2021.

According to the FAO, grain prices fell by 1.4% in August, compared to July, as a result of the agreement concluded between Ukraine and the Russian Federation to unblock exports from the main Black Sea ports and the favorable prospects for the wheat harvest in North America and Russia.

Conversely, the price of corn rose 1.5% last month as extremely hot and dry weather reduced the outlook for this year’s crops in Europe and the US.

Prices of vegetable oils, sugar, meat and dairy products also fell in August, reflecting the improvement in supply.

FAO estimates for this year’s cereal harvest

Also on Friday, the FAO also released a set of estimates for world cereal production in 2022. The FAO expects global cereal production to fall to 2.774 billion tonnes, down from its previous forecast of 2.792 million tonnes. , 1.4% below the level of world grain production in 2021.

The worsening of the forecast comes as a result of the outlook for reduced corn production in the Northern Hemisphere due to weather conditions – and the decrease in crop yields in the European Union, the FAO said.