Global food prices continues to drop in June due to significant drops in international quotations of sugar, vegetable oils, cereals and dairy products, according to a Friday report released by the Food and Agriculture Organization of the United Nations (FAO).
The FAO Food Price Index averaged 122.3 points in June, down 1.4 percent from May.
The FAO sugar Price Index declined by 3.2 percent in June, marking the first decline after four consecutive monthly increases. The June decline in international sugar prices was largely due to the successful progress of the 2023/2024 sugarcane harvest in Brazil and weaker global import demand. The El Niño, a weather phenomenon in the tropical Pacific Ocean, has also affected the price change.
The vegetable oil price index fell by 2.4 percent from May, driven by lower prices of palm and sunflower oils. In contrast, international soy oil prices picked up, underpinned by fears of crop damage from drought in the United States.
The FAO cereal price index dropped for 2.1 percent from May, a 23.9 percent decline since last year. International coarse grain prices fell the most in five months, down 3.4% since May. The decline was driven by increased seasonal supplies from harvests in Argentina and Brazil.