World food prices rose for a second month in a row, according to the Food and Agriculture Organization (FAO) of the United Nations.
The FAO reported its food price index climbed 1.1 points (1.2%) from June to an average of 94.2 points in July. That’s also up nearly 1 point (1.0%) from one year ago.
FAO said, “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.”
FAO lowered its global cereal production forecast for 2020 by 9.3 million metric tons (MT) to a still-record 2.790 billion MT.
It expects global wheat production to account for 761.5 million MT of that tally, which is up 3.2 million MT from its forecast last month and in line with last year’s above-average production.
The increase was primarily driven by a jump in its Australian wheat production forecast, with widespread rain and favorable forecasts expected to boost crop yields there.