Global food prices dropped in June for the first time in nearly a year
The Food and Agriculture Organization found that world food prices fell in June for the first time in about a year.
The release issued on July 8 stated that the FAO Food Price Index averaged 124.6 points last month compared to May’s 127.8.
According to the organization, the decline in June was due to a drop in vegetable oils, cereals, and dairy prices.
The vegetable oil price index fell by 9.8% in June, which marked a four-month low. “The sizeable month-on-month drop mainly reflects lower prices of palm, soy, and sunflower oils,” said the FAO.
FAO Food Price Index
The cereal price index dropped by 2.6%. International maize prices fell 5.0%, mostly because Argentina had higher than expected yields, and the US saw improved crop conditions.
International wheat prices declined by 0.8% in June, and international rice prices saw a 15 month low due to “high freight costs and container shortages,” which exported sales.
Dairy prices saw a 1.0% drop. According to the FAO, the biggest drop was seen by butter due to a fast decline in global import demand and a slight increase in inventories, especially in Europe.
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But not all sectors have seen a decline. The sugar index increased by 0.9% month-on-month gain, and the meat index grew 2.1% from May.
However, across all categories, June 2021 was significantly higher in comparison to June 2020.