World food prices fell in July to the lowest level since the beginning of the year

In July, the world food price index fell 9%, to its lowest level since January, the agency said. Food and Agriculture Organization of the United Nations (FAO).

The fall leads to the fact that world food prices are positioned at the level that was before the blockade of the ports of Ukraine due to the conflict with Russia.

As you know, the war Russia and Ukraineboth major food exporters pushed prices for inputs such as wheat and corn to record levels.

Wheat and corn prices fell last month after Moscow and Kyiv reached an agreement to open Ukrainian ports and the first ship sailed from Odessa.

“Higher seasonal availability in Argentina and Brazil, where maize yields exceeded last year’s pace, also helped ease price pressures,” the FAO said in a statement.

Not only did grain prices fall, but quotes from vegetable oils, sugar, dairy products and meat.

According to Bloomberg, this result means that world food prices have recorded the biggest percentage drop since 2008.

Despite this change, which is the fourth in recent months, prices for consumers still elevated.

“The decline in food prices from very high levels is welcome, but many uncertainties remain,” said Maximo Torero, FAO Chief Economist.

FAO warns that a bleak global economic outlook, currency volatility and high fertilizer prices, which could affect future production and farmers’ livelihoods, pose serious challenges to global food security.