Global food commodity prices fell in June for the first time in 12 months, according to a report released by the United Nations on July 8, 2021. The FAO (Food and Agriculture Organization of the United Nations) cited the price index for June at 124.6 points, a 2.5% decline of the May indexed price of 127.8. This drop for June is led by declines in vegetable oils, cereals, and dairy, which offset some gains in meat and sugar. This decline is the first drop in food index prices in 12 consecutive months and still leaves us 33.9 percent higher priced than the food index price one year ago (The Food Price Index has been on a fairly steady rise for the past 5 years. The index was at 91.9 in 2016 and is now almost 36% higher (124.6) , even with the June decline.)
The largest declines were in vegetable oil, which dropped 9.8 percent in June. Soy and sunflower oil also declined slightly.
Cereal prices dropped 2.6 percent. Dairy dropped 1 percentage point. And maize fell a full 5 percent, based on improved yields in Argentina and improved crop conditions in the US.
While world food prices still remain at historically high levels, forecasts for the upcoming months are predicated on a combination of supply, demand, and weather which will determine the success of harvests in Europe and North America to replenish depleted stock.
Stay tuned as we continue to track food prices and keep you abreast of the unfolding global food price index for the remainder of 2021.
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