The prices of coffee, seed oil and avocados are starting to fall

The prices of coffee, some cooking oils and avocados are starting to fall, even though it is still relatively high compared to the beginning of the year. Various factors influenced the development of the food market, especially thanks measures taken by governments and central banks and the fear of a recession global which dampens the outlook for demand. However, a general decline is unlikely, mainly due to supply chain disruptions that continue to weigh on world trade.

In the Asia Pacific region, which includes all Asian and Oceanic nations bordering the Pacific Ocean, the prices ofsunflower oil and palm oil Indians they went down respectively 7% and 12% between the end of May and June, according to data from the Tridge group, reported by Cnbc. During the same period, the prices ofpalm oil in Bangladesh they almost fell by the wayside 25%.

What a worry coffeein July wholesale prices in Vietnam they got off 5% compared to the beginning of the invasion of Ukraine in February. On the other side of the globe, avocado prices have plummeted in almost every major avocado-producing state in Latin America. The wholesale cost ofMexican avocados down 27%while for that Colombian autumn is coming soon 40%. In this case, according to Tridge, the collapse was largely due to the oversupply that hit the Peruvian market, putting downward pressure on avocado prices across the region.

What factors influence the market?

Regarding the declines just described, according to Minwoo Nam, a spokesperson for Tridge, – There are many factors that affect the market. First, the fear of a global recession it dampens the outlook for demand. Also because prices have become too high, so consumers spend less or look for substitutes. Plus also the efforts made by governments and central banks food prices are starting to cool down” he said, citing sunflower oil as an example. In addition, Nam highlighted how some investment funds are liquidating their holdings in commodities.

While remaining near all-time highs, the food price index for the United Nations Food and Agriculture Organization fell for a third straight month in June and surpassed the March record. The decline in recent months reflects the fall in international prices of vegetable oils, grains and sugar, while those of dairy products and meat increased.

In addition, the FAO Cereal Price Index also showed a decrease in international prices of food items such as wheat, which, however, remain very high after the near-record levels reached in May. The prices are really still 48.5% higher than in the same period last year.

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