Global food prices fall in June for the first time in 12 months: Fao
Global food prices fell in June for the first time in 12 months in June. Food price volatility has been the highest in the past decade and many food prices over the past two months have started to level off.
Global food prices have fallen, pushed down by declines in vegetable oils, grains and dairy products, the United Nations food agency said Thursday.
On a monthly basis, there was a decrease of 2.5%, but on an annual basis, it is still 34% higher.
The Food and Agriculture Organization of the United Nations (FAO) vegetable oil price index plunged 9.8% in June, in part due to a drop in oil prices palm, which were affected by expectations of production gains among the main producers and a lack of new import demand. Soybean and sunflower oil prices also fell.
The grain price index fell 2.6 percent in June month-on-month, but was still up 33.8 percent year-on-year.
Corn prices fell 5.0 percent in part due to higher than expected yields in Argentina and improved harvest conditions in the United States.
Dairy product prices fell 1.0% on a monthly basis, with all components of the index easing. Butter recorded the largest decline, affected by a rapid decline in global import demand and a slight increase in stocks, especially in Europe.
The sugar index posted a 0.9% month-on-month gain, reaching its highest level since March 2017. The FAO said uncertainties over the impact of adverse weather conditions on crop yields in Brazil, the world’s largest sugar exporter, drove prices up.
International rice prices also fell in June, hitting 15-month lows, as high freight costs and container shortages continued to limit export sales, FAO said.
(With Reuters entries)
(Edited by : Abhishek Jha)