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market | IST

World food prices fall in June for first time in 12 months: FAO

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World food prices fell in June for the first time in 12 months in the month of June. The volatility in commodity food prices has been the highest in the last decade and many of the food prices in the last couple of months have started to plateau down.

World food prices fell in June for the first time in 12 months in the month of June. The volatility in commodity food prices has been the highest in the last decade and many of the food prices in the last couple of months have started to plateau down.
World food prices fell, pushed lower by declines in vegetable oils, cereals and dairy products, the United Nations food agency said on Thursday.
On a month-on-month basis there has been a 2.5 percent of decline but on a year-on-year basis this is still 34 percent on the higher side.
Food and Agriculture Organization’s (FAO) vegetable oil price index plunged 9.8 percent in June, partly on the back of a fall in palm oil prices, which were hit by expectations of output gains in leading producers and a lack of fresh import demand. Soy and sunflower oil quotations also dropped.
The cereal price index dropped 2.6 percent in June month-on-month, but was still up 33.8 percent year-on-year.
Maize prices fell 5.0 percent partly because of higher-than-expected yields in Argentina and improved crop conditions in the United States.
Dairy prices dipped 1.0 percent on a monthly basis, with all components of the index easing. Butter recorded the largest drop, hit by a rapid decline in global import demand and a slight increase in inventories, especially in Europe.
The sugar index posted a 0.9 percent month-on-month gain, reaching its highest level since March 2017. FAO said uncertainties over the impact of unfavourable weather conditions on crop yields in Brazil, the world's largest sugar exporter, pushed prices up.
International rice prices also fell in June, touching 15-month lows, as high freight costs and container shortages continued to limit export sales, FAO said.
(With Reuters inputs)