According to the United Nations food agency FAO, world food prices fell in June for the first time in 12 months, pushed lower by declines in vegetableoils, cereals and dairy products.
In deed, the Food and Agriculture Organization’s food price index, averaged 124.6 points last month versus a revised 127.8 in May.
In particular, FAO’s vegetable oil price index plunged 9.8%.
The cereal price index dropped 2.6% in June month-on-month, but was still up 33.8% year-on-year.
Corn prices fell 5.0%, partly because of higher-than-expected yields in Argentina and improved crop conditions in the United States.
To note, however, that on a year-on-year basis, all prices were up 33.9% compared to June of last year.
FAO also said that worldwide cereal harvests would come in at nearly 2.817 billion tonnes in 2021, slightly down on its previous estimate, due the sharp cut to the Brazilian corn production forecast, but still on course to hit an annual record.
Global wheat production prospects also retreated this month, as dry weather in the Near East hurt yield prospects there.
However, the forecast for world cereal utilization in 2021/22 was cut by 15 million tonnes from the previous month to 2.810 billion tonnes, still 1.5% higher than in 2020/21.
Consequentially, world cereal stocks by the close of seasons in 2021/22 are now expected to rise above their opening levels for the first time since 2017/18.
Higher corn stocks foreseen in #China account for the bulk of this month’s upward revision to world cereal inventories.
