Rome: World Food Prices fell in June for the first time in 12 months, driven lower with a decrease in vegetable oil, cereal and dairy products, the UN food agency said on Thursday.
FAO based in Rome also said in a statement that the harvest of cereals around the world will come in almost 2.817 billion tons in 2021, slightly downward in previous estimates, but still on track to reach an annual record.
The food price index of the organization and agriculture, which measures monthly change for a basket of cereals, oil seeds, dairy products, meat and sugar, an average of 124.6 points last month versus a revision of 127.8 in May.
The May number was given 127.1.
In the year-to-year, the price rose 33.9% in June.
The FAO vegetable oil price index fell 9.8% in June, partially behind the decline in palm oil prices, which was hit by expectations of the increase in output in the leading manufacturers and a lack of fresh import demand.
The quotes of soybean oil and sunflowers also go down.
The cereal price index fell 2.6% in June-to-month, but still rose 33.8% year-on-year.
Corn prices fell 5.0%, partly because of higher yields than approximate in Argentina and increased plant conditions in the United States.
The price of international rice also fell in June, touching a 15-month low, because of the high shipping costs and lack of containers continued to limit the export sales, FAO said.
Milk prices are dipped 1.0% every month, with all index reduction components.
Butter records the biggest decline, exposed to a rapid decline in global import demand and a slight increase in inventory, especially in Europe.
The sugar index posted an increase of 0.9% month to month, reaching the highest level since March 2017.
FAO said uncertainty over the impact of unfavorable weather conditions on the harvest results in Brazil, the world’s biggest exporters in the world, pushed prices.
The meat index rose 2.1% from May, with quotes for all types of meat increased because the increase in imports by several East Asian countries compensated the slowdown in the purchase of Chinese meat.
FAO said slightly falling in estimates for world cereal production this year in principle was triggered by sharp cuts for the estimated production of Brazilian corn as a long period of dry weather.
The prospect of global wheat production also resigned this month, because of dry weather in hurting the prospect of Eastern Hak sick there.
Instead, the estimated global rice output in 2021 rose.
Forecasts for the use of world cereals in 2021/22 were cut 15 million tons from the previous month to 2,810 billion tons, still 1.5% higher than in 20/21.
World cereal shares at the nearest 2021/22 are now expected to rise above their opening level for the first time since 2017/18.
“Higher corn shares are predicted in Chinese accounts for most of this upward revision for world cereal supplies,” FAO said.