Food prices fall back after 5 month riseStaff Writer | August 5, 2016
The UN Food and Agriculture Organisation (FAO) published its Food Price Index, showing that global food prices dropped slightly in July, after rising over the precious five months.
Food Price Index Overall food prices were just under once percent lower
Drops in quotations for grains and vegetable oils offset firmer meat, dairy and sugar prices last month, leading to the overall easing in prices.
Cereal prices were 5.6% lower in July than in June, led by a drop in maize prices on the back of favourable weather conditions in the United States (the world’s number one exporter).
Expectations of large supplies this year also led wheat prices downwards.
Vegetable oil prices dropped for a third consecutive month, falling by 2.8%, mainly as a result of increased palm oil production, but also with soybean, sunflower and rapeseed oil prices easing on large supply prospects.
Dairy prices rose by 3.2%, driven by butter, and meat prices rose by 1.3% with EU pig prices and reduced output of meat from sheep and cattle from Oceania leading the trend. Sugar prices rose on currency moves between Brazil and the united States. ■