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FAO: Global food prices fall for the first time in a year in June

08 July 2021 14:47 (UTC +04:00)

Global food prices fell for the first time in 12 months in June due to a decline in vegetable oils, cereals and dairy products, the United Nations Food Agency said Thursday, APA reports citing the forecast of FAO.

FAO said in a statement that global grain yields in 2021 would reach nearly 2,817 million tonnes, slightly below previous estimates, but still set an annual record.

Food and Agriculture Organization’s food price index, which measures monthly fluctuations in baskets of grains, oil seeds, dairy products, meat and sugar, averaged 124.6 points last month, compared to 127.8 in May. It was a point.
The May number was previously given as 127.1.
Year-over-year prices rose 33.9% in June.
FAO’s vegetable oil price index plummeted 9.8% in June. This is partly due to the fall in palm oil prices, which was hit by the expectations of higher production by major producers and the lack of new import demand. Soybean and sunflower oil prices have also fallen.
The grain price index fell 2.6% month-on-month in June, but still rose 33.8% year-on-year. Corn prices have fallen 5.0%. This is partly due to higher-than-expected yields in Argentina and improved crop conditions in the United States.
According to FAO, international rice prices also fell in June, hitting a 15-month low. This is because high freight rates and container shortages continued to limit export sales.
Dairy prices fell 1.0% on a monthly basis, easing all elements of the index. Butter recorded the largest decline, hit by a sharp decline in global import demand and a slight increase in inventories, especially in Europe.
The sugar index rose 0.9% month-on-month, reaching its highest level since March 2017. FAO said uncertainties about the impact of adverse weather conditions on Brazil, the world’s largest sugar exporter, on yields pushed up prices.
The meat index rose 2.1% from May, with prices for all meat types rising as increased imports by some East Asian countries compensated for the slowdown in China’s meat purchases.
FAO said that the slight decline in global grain production estimates this year was mainly caused by a significant reduction in Brazil’s corn production forecasts, mainly as long-term dry weather weighed on yield forecasts. Said that.
Global wheat production prospects also receded this month as the dry weather in the Near East hurt the prospects for harvests there. In contrast, global rice production forecasts for 2021 were positive.
The global grain utilization forecast for 2021/22 is 2.81 billion tonnes, down 15 million tonnes from the previous month, 1.5% higher than in 2020/21.