FAO World Food Price Index Edges Up In June
2011-07-07 15:49:08
World food prices increased in June, due mainly to strong rise in global sugar prices, the Food and Agriculture Organization (FAO) said Thursday.
The FAO food price index advanced 1 percent from a month earlier to 234 points in June. This was, however, below February's all-time high of 238.
Compared to June 2010, the index advanced 39 percent. The sugar price index rose 14 percent from May to June, reaching 359 points, though it was 15 percent below its January record.
The increase reflected concerns that production in Brazil, the world's biggest sugar producer, may fall below last year's level.
The cereal price index averaged 259 points in June, down one percent from May but 71 percent higher than in June 2010. Improved weather conditions in Europe and the announced lifting of the export ban by Russia contributed to the price drop.
However, the maize market remained tight because of low supplies last year and continued wet conditions in the U.S. Prices of rice were mostly up in June, reflecting strong import demand and uncertainty over export prices in Thailand, the world's largest rice exporter.
Dairy prices remained virtually unchanged in June, while the prices of meat rose marginally from May.
The UN agency has revised up the world cereal production forecast due to two consecutive revisions to the US crops and planting prospects for 2011. FAO's latest forecast for world cereal production in 2011-2012 stands at nearly 2, 313 million tonnes, 3.3 percent higher than last year and 11 million tonnes above the agency's last forecast on 22 June.
World cereal utilization in 2011-2012 is forecast to grow 1.4 percent from 2010-2011, reaching 2,307 million tonnes, just five million tonnes under forecast production.