UN: Global Food Prices Continue To Drop
Global food prices have dropped for the third straight month in a row, according to the United Nations' food agency.
The Food and Agriculture Organisation's (FAO) said the drop helps boosts the supply outlook for cereals and vegetable oils.
The FAO price index, which measures monthly price changes for a series of cereals, oilseeds, dairy, meat and sugar, averaged 206.0 points in June.
This was down 3.8 points, or 1.8%, from May.
It was almost 2.8% below the June 2013 figure and the lowest since January, prompted by cereal prices falls on better crop prospects and the easing Ukraine crisis.
The UN also raised its forecast for global cereal production for this year by 21.5 million tonnes on top of a May estimate of 2.478 billion tonnes.
The boost was centred on an increased maize figure of almost 1%.
The FAO also revised up its world cereal stock estimate for the end of the 2014/15 crop season by 28 million tonnes, to 604 million tonnes.
This is a 5.3% jump above the 2013/14 season and the highest level for more than a decade.
It added that vegetable oil prices fell 2.4% year-on-year in June, as palm oil dropped to a nine-month low forecasts for a record global soybean crop pushed soy oil prices to a four-year low.
Palm oil is the most widely traded edible oil in the world.
The FAO added that it expects global wheat output in 2014 to be 702.7 million tonnes, slightly higher than May's forecast but 1.8% down on last year's record harvest.