The United Nations’ Food and Agricultural Organization said Friday that its global Food Price Index rose 1.3% in July compared with the month before — notching only the second increase in a year of steady declines since the grain deal was struck. The monthly index, which tracks a range of food commodities, is still down almost 12% from July 2022, but Russia’s decision to withdraw from the UN-backed deal pushed up the prices of grains and sunflower oil.
Ukraine is by far the biggest exporter of sunflower oil, accounting for 46% of the world’s exports, according to the United Nations. Concerns over flagging production of palm oil in south east Asia, and of soybean and rapeseed oil in North America, have also buoyed prices, the agency said. The FAO’s global wheat price index — which feeds into its broader Food Price Index — jumped 1.6% in July from the month before, its first monthly increase in nine months.