Corn prices are down sharply around the world, reflecting favorable growing weather in the United States, helping to pull down the FAO Food Price Index. The UN agency said cereal prices fell by 5.6 percent and vegetable oil prices dropped by 2.8 percent during July, offsetting firmer dairy, meat and sugar prices.
Overall, the food price index, which tracks international prices for five major groups of foods, was down 0.8 percent, interrupting a five-month run of increases.
Besides corn, wheat prices slipped during July “on very large world supplies and, in particular, prospects for abundant export availabilities from the Black Sea region,” said FAO. A record wheat crop is forecast. Vegetable oil prices fell for the third month in a row as palm oil production recovered in Southeast Asia.
Although dairy prices rose by 3.2 percent, “they remain at very low levels compared to recent years,” said FAO. A tightening pork supply in Europe helped drive up meat prices while the strengthening currency in Brazil, the world’s largest sugar grower, bolstered sugar prices.