World food prices index stable in June

By Tuba Ongun

The index for global food prices remained stable in June as hikes in prices for vegetable oils, sugar and dairy products offset a decline in those for cereals, according to the UN Food and Agriculture Organization (FAO) on Friday.

The FAO food price index averaged 120.6 points in June, unchanged from its revised figure for May.

The index is a trade-weighted measure that tracks international market prices of five major food commodity groups.

The cereal price index decreased 3% month-on-month in June, led by improved production prospects in major exporting countries.

The FAO Vegetable Oil Price Index, on the other hand, rose 3.1% on May, buoyed by reviving global import demand for palm oil and firm demand from the biofuel sector in the Americas for soy and sunflower oils.

The Sugar Price Index grew by 1.9% in the same period, shifting from three consecutive monthly declines.

The index for dairy prices went up by 1.2% in June compared to a month earlier, with international quotations for butter reaching a 24-month high.

The FAO Meat Price Index was broadly unchanged in June, as a supply led decline in international poultry meat prices was nearly offset by slight increases in the prices of ovine, pig and bovine meats.