Global food prices vault by 33.9pc in June

World food prices fell in June for the first time in 12 months, pushed lower by declines in vegetable oils, cereals and dairy products, the United Nations food agency said on Thursday, Reuters reports.

The Rome-based FAO also said in a statement that worldwide cereal harvests would come in at nearly 2.817 billion tons in 2021, slightly down on its previous estimate, but still on course to hit an annual record.

The Food and Agriculture Organization’s food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 124.6 points last month versus a revised 127.8 in May.

The May figure was previously given as 127.1.

On a year-on-year basis, prices were up by 33.9 percent in June.

FAO’s vegetable oil price index dropped by 9.8 percent in June, partly on the back of a fall in palm oil prices, which were hit by expectations of output gains in leading producers and a lack of fresh import demand.

Soy and sunflower oil quotations also dropped.

The cereal price index dropped by 2.6 percent in June month-on-month, but was still up 33.8 percent year-on-year. Maize prices fell by 5 percent, partly because of higher-than-expected yields in Argentina and improved crop conditions in the United States.

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