Global Food Prices Decline Marginally in June: FAO

Rome: Global food prices declined marginally in June, as lower prices of dairy products and vegetable oils more than offset a significant jump in maize quotations, and are now very close to their level of a year ago, according to a report by the Food and Agriculture Organization of the United Nations released today.

The FAO Food Price Index, which tracks monthly changes in the international prices of commonly traded food commodities, averaged 173 points in June, down 0.3 percent from May.

The FAO Cereal Price Index rose 6.7 percent in June, as expectations of much tighter maize export suppliers from the United States of America pushed quotations up for maize and, as a spillover, also for wheat. Rice prices were broadly stable.

The FAO Sugar Price Index in June was up 4.2 percent from the previous month, strongly influenced by the Brazilian Real’s appreciation against the U.S. dollar.

By contrast, the FAO Dairy Price Index decreased by 11.9 percent, marking its first decline in five months, led by frail demand for cheese and butter.
The FAO Vegetable Oil Price Index declined 1.6 percent during the month, with palm oil and soy oil prices both down on the back of sluggish global import demand and expectations of ample global supplies, respectively.

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