World food prices fall for second month in July

Rome, Aug 6 (Prensa Latina) World food prices eased for a second month in a row in July, reflecting declines for cereals, vegetable oils and dairy products, but remained up nearly a third over the past year, the Food and Agriculture Organization (FAO) reported.

August 6, 2021
07:17

The FAO Food Price Index averaged 124.6 points in June 2021, down 2.5% from May, but still 33.9% higher than its level in the same period last year. The decline in June marked the first drop in the Index following twelve consecutive monthly increases.

FAO’s cereal price index fell 3.0% in July from the previous month, weighed down by a 6% drop in maize (corn) prices. Maize prices were pressured by improved Argentine and U.S. production prospects and cancelled import orders by China, which outweighed harvest concerns in Brazil, the FAO said. However, wheat prices rose 1.8% to their highest since mid-2014, boosted by worries over dry conditions in North America, heavy rain in Europe and lower-than-expected initial yields in Russia.

The FAO Dairy Price Index dropped 2.8% in July compared to June. Skimmed milk powder reported biggest fall, followed by butter, whole milk powder and cheese.

In contrast, FAO’s sugar index increased by 1.7%, recording a fourth straight monthly rise with support from firmer crude oil prices and uncertainty over the impact of frost on yields in top exporter Brazil.

The meat index rose slightly overall. Poultry prices increased most sharply due to strong imports in East Asia while pork prices eased amid a decline in Chinese imports, the FAO said.

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