UN body: Global food prices almost steady in June

By Tuba Sahin

ANKARA (AA) - Global food prices marginally declined in June compared to the previous month, the UN food body announced on Thursday.

Food and Agriculture Organization (FAO) food price index averaged at 173 in June, slightly down from 173.5 in May, the UN body said in a statement.

"Lower prices of dairy products and vegetable oils more than offset increases in the prices of cereals, sugar and meat; ending almost five months of uninterrupted rise in the overall value of the index," it said.

The FAO Food Price Index is a trade-weighted index that tracks international market prices of five major food commodity groups.

The dairy price index slipped 11.9% or 26.9 points monthly in June, marking the first monthly decline in five months.

The decline stemmed from frail demand for cheese and butter, according to the FAO.

The FAO vegetable oil price index last month went down 1.6% from May, reaching the lowest level since December 2018.

"The latest drop mostly reflects weakening palm oil and soy oil prices, whereas sunflower and rapeseed oil values increased marginally," it said.

The data showed that the cereal price index surged 6.7% during the same period, mainly driven by a sharp rise in maize export price quotations.

In June, the sugar price index increased 4.2% from the previous month.

"International sugar prices were largely influenced by movements in the Brazilian currency (Real), which gained strength against the U.S. dollar," the statement noted.

The FAO meat price index rose by 1.5% during the same period, led by strong import demand from East Asia for ovine, pig and poultry meats to offset domestic production shortfalls due to the spread of African Swine Fever.