Istanbul, July 9 () - Worldwide conditions for cereal crops will lead to better-than-expected production this growing season at the global level, which supress the global food prices at six-year low level, according to UN Food and Agricultural Organisation (FAO).
The FAO Food Price Index fell by 0.9 percent to 165.1 points in June on monthly basis, still at its lowest level since September 2009 and as much as 21.0 percent lower than a year earlier.
The Food Price Index is a trade-weighted index that tracks prices on international markets of five major food commodity groups: cereals, meat, dairy products, vegetable oils and sugar.
"Concerns are growing over a sharp shortfall in maize grown in sub-Saharan Africa as well as poor production in other food insecure hotspot areas" the FAO stated in its latest report on global food prices.The FAO Cereal Price Index rose by 1.5 percent to 163.2 points in June, marking the first month-on-month rise since December 2014. Compared to June 2014, prices have fallen by as much as 17 percent.
All of last month’s price strength stemmed from wheat and coarse grain prices, which gained 2.0 percent each, while rice quotations remained under pressure, the FAO said. "Although unfavourable weather in some regions provided support to prices, the rise was contained, amid abundant carryover stocks and generally good production prospects."
Vegetable oil prices also rose in June. The FAO Vegetable Oil Price Index incresaed by 1.3 percent to 156.2 points, but still 17 percent below its level in June last year. "The recent rise was mainly driven by palm and soy oils" the FAO said.
Global meat prices remained unchanged in June, with prices for pigmeat moved higher, while those for bovine and ovine meat declined, with poultry little changed. After falling since June 2014, average pigmeat prices rose in both May and June, underpinned by a strengthening of quotations in Europe.
For bovine meat, augmented domestic supplies in some markets meant that import demand weakened somewhat causing quotations to decrease.