The FAO Food Price Index continued to decline for a third month running to 154.2 in June of 2022 from an upwardly revised 157.9 in May. Prices of cereals fell 4.1%, with wheat cost sinking 5.7% on seasonal availability from new harvests in the northern hemisphere, improved crop conditions in some major producers, including Canada, higher production prospects in Russia, and slower global import demand.
Also, lower prices across palm, sunflower, soy and rapeseed oils pushed the vegetable oil price index 7.6% lower and cost of sugar went down 2.6% amid falling demand and as a weaker Brazilian real and lower ethanol prices in Brazil prompted producers to step up sugar production.
Meanwhile, prices increased for meat (1.7%) with poultry quotations hitting an all-time high and prices of diary products rose 4.1%, with quotations for cheese increasing the most. Despite the recent slowdown, food prices remain close to record levels hit in March and are 23.1% higher than a year ago.