World food prices fall for the second consecutive month in June, says FAO

Fair in Sarcelles, France, in the suburbs of Paris, France.
Tom Nicholson/Reuters
World food prices recorded a slight drop in June, as reductions in the prices of sugar, cereals and dairy products outweighed increases in the prices of vegetable oils and meat, the Food and Agriculture Organization of the United Nations (FAO) reported on Friday.
The FAO Food Price Index, which tracks monthly variations in a basket of internationally traded food commodities, recorded an average of 130.3 points in June, compared to 130.8 points in May.
The index had already fallen in May from the three-year high recorded in April, when the war in Iran led to a jump in vegetable oil prices.
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The value recorded in June was 1.7% higher than the previous year, but 18.7% below the record peak reached in March 2022, following Russia's large-scale invasion of Ukraine, FAO said.
The cereal price index fell 3.5% compared to May. Wheat prices came under pressure due to the rapid advance of the harvest and strong supply prospects in the Black Sea region, while corn fell on prospects of abundant supply in South America and the fall in the price of crude oil.
The FAO rice index, however, rose 3.2%, supported by higher Asian demand for indica rice.
Sugar prices fell 5.7%, as lower ethanol prices in Brazil encouraged mills to use more sugar cane in sugar production. However, concerns about the possible impact of El Niño on production in India and Thailand limited the overall decline.
Dairy prices fell 1.5%, pressured by increased supply.
On the other hand, the FAO meat index rose 0.4% from the previous month, setting another record, driven by poultry amid strong global demand.
Vegetable oil prices rose 3.8%, driven by higher oil prices palm and rapeseed, in part due to the demand for biodiesel.
*This report is being updated

Source: G1