World food prices fell last month for the first time in a year. The FAO Food Price Index (FFI) stood at 124.6 points in June, 2.5% less than in May. The decline in June was mainly driven by lower prices for grains, corn, and oils.
The monthly index from the United Nations food agency is used to track changes in international prices for the most traded food commodities.
The FAO price index for vegetable oils fell by 9.8% in June, reaching its lowest level in four months. This significant decrease is mainly due to drops in international prices for palm, soybean, and sunflower oils.
The grain price index dropped by 2.6% compared to May but remains 33.8% higher than last year. International corn prices declined by 5.0% following a drop in Argentina amid increased supply due to a larger harvest.
International wheat prices decreased slightly in June, by 0.8 percent. This was supported by favorable global outlooks and improved crop varieties in many major producing countries.
The value of the FAO dairy price index fell by 1 percent in June to 119.9 points. The drop in international quotations affected all types of dairy products included in the index, with the largest fall in butter prices. This is explained by a sharp decline in global demand and a slight rise in stocks, especially in Europe.
The FAO sugar price index continued to rise for the third consecutive month and reached a new multi-year high. Rising prices are fueled by uncertainty over how badly weather will affect the harvest in Brazil, the world's largest sugar exporter.
The FAO meat price index rose in June for the ninth consecutive month by 2.1 percent, 15.6 percent year-on-year, but still remains 8.0 percent below the peak level reached in August 2014.