Global food prices continued to slide down for the third month in June, the UN’s Food and Agriculture Organization (FAO) reported July 5, with a basket of representative commodity prices falling to the lowest level since September 2010.
“Continued economic uncertainties and generally adequate supply prospects kept international prices of most commodities under downward pressure, although growing concerns over adverse weather sustained prices of some crops toward the end of the month,” the FAO reported.
Changes in food prices have started to worry global leaders, as populations grow and scientists voice concerns about the impact of environmental change of food production.
Some analysts say elevated food prices have led to major changes in the political situation in some countries, like the changes, which swept through northern Africa and Middle East.
The UN organization said it is not particularly concerned about food prices at present because of adequate global supplies of cereals. However officials in the Rome based organization said they are closely watching the potential impact of adverse weather in the U.S. grain belt.
The FAO said, “This may result in a rebound of the Food Price Index in July.”
Global grain prices in June were down 16.8% from their peak in April 2011. June’s volatility was mainly related to weather.
The FAO Oils/Fats Price Index was also down in June, with the index off more than 12% since April.
The FAO said the international easing in fats and prices resulted from larger seeding in the northern countries, coupled with softer demand for vegetable oils from the energy sector.
On global meat markets FAO said that prices were down 1.3% in June from month earlier...
Source: Argentine Beef Packers S.A.
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