International food commodity prices post highest monthly increase in June
International food commodity prices increased by 4.2 percent in June, the steepest monthly jump reported in the past four years, the Food and Agriculture Organization reported.
The FAO Food Price Index averaged 163.4 points in June. While it was one percent below last year’s level, the increase in June affected all commodities except vegetable oils, and marked the fifth consecutive month that the index inched up.
The FAO Food Price Index is a trade-weighted index that tracks international market prices for key traded food groups.
Heavy rains in Brazil, the world’s largest sugar producer and exporter, pushed the FAO Sugar Price Index by 14.8 percent from May while the FAO Cereal Price Index rose 2.9 percent on account of higher maize prices.
The FAO Dairy Price Index rose 7.8 percent from May because of the uncertain outlook in Australia and New Zealand and expectations of a slower production growth in the European Union.
The FAO Meat Price Index rose 2.4 percent as average quotations for pork, beef, and poultry increased for the third consecutive month.
The FAO Vegetable Oil Price Index defied the trend, dropping by 0.8 percent from May.