Meat prices continue to rise and, since September of last year, have had continuous growth, accumulating an increase of around 20% worldwide. This increase can be seen in the FAO Food Price Index, which in the last two months has registered a general reduction in prices.
With an average of 123 points, the index fell 1.2% from June to July, driven mainly by the fall in cereal prices. Meat and sugar held an even greater fall for food, considering that the valuation of the first month was 0.77% and the second had a 1.69% increase.
International corn prices dropped 9.1 points (-6% in the month) and were reduced by higher than expected production in Argentina, prospects for better harvests in the US and order cancellations previously placed by China. Brazil is heading in the opposite direction: in addition to the prospect of a second harvest failure, domestic grain prices remain high and motivate a reduction in the product’s external supply. Compared to June, there was over a 5% increase for the cereal in the domestic market.