WASHINGTON, July 12, 2107 - Global food commodity prices rose in June, led by wheat and meat prices, according to the FAO Food Price Index compiled by the U.N.’s Food and Agriculture Organization (FAO).
The monthly trade-weighted index, which tracks international market prices of five major food commodity groups, averaged 175.2 points in June, up 1.4 percent from May and up 7 percent from a year earlier.
The FAO Cereal Price Index rose by 4.2 percent in the month, amid surging prices of high-protein wheat due to deteriorating crop conditions in the U.S. Maize prices, by contrast, declined amid record harvests in South America.
FAO's price indices for meat and dairy products also rose, while those for vegetable oils and sugar dropped. According to FAO's latest Cereal Supply and Demand Brief, which also was released last week, global cereal supplies are likely to remain abundant in the coming year despite tightening supply conditions for high-protein wheat. FAO revised down its June forecast for global wheat output in 2017, while raising those of maize and rice. Global cereal production this year is likely to total 2 593 million metric tons, down 0.6 percent from 2016.