Adjusted for inflation, FAO’s Food Price Index fell in June by 2.5 percent, ending a 12-month runup for world food prices. The decline came from a strong drop for vegetable oils, down nearly 10 percent from May pricing, and smaller drops for cereals and dairy. Both oils and dairy saw an end to their own 12-month rallies. (All prices are “real,” adjusted for inflation.)
The food price index was still up nearly 32 percent from June 2020. For calendar 2021 to date, the price index is up 21 percent YOY and up 23 percent from the five-year average. Food commodities saw seasonal pressure from harvest activity and from weakness in export demand.
The June vegetable oils price index was down 10 percent MOM to a four-month low but still up 79 percent YOY. Price pressure came from weakness in palm, sunflower, and soybean oils.
The sugar price index was up 1 percent month on month on weather uncertainty for top-origin Brazil, a rising Brazilian real, and support from energy prices. The June sugar index was still up under 42 percent YOY.