Global food prices likely to be high in July: FAO
New Delhi: Global food prices are expected to be high on account this month, due to spurt in prices of various commodities from June-end onwards, following adverse weather conditions, United Nation's body FAO said Thursday.
"Food commodity prices have started rising again recently, mostly because of adverse weather and this may result in a rebound of the Food Price Index in July," Food and Agriculture organisation (FAO) said in a statement.
Grain prices have been very volatile in June due to continuing dryness and above-average temperatures in most of the major maize growing regions of the US, it pointed out.
FAO also lowered its forecast for 2012 world cereal production by more than 23 million tonnes (MT) from May. The global output now stands at 2,396 MT, still at record level and 2 percent up from the previous high last year.
The global body on the farm sector, however noted that global food prices fell for the third consecutive month in June, 2012, lowest since September, 2010, on account of adequate food supplies and continued economic uncertainties.
"The FAO Food Price Index (FFPI) averaged 201 points in June, 2012, down 4 points (1.8 percent) from a slightly revised (up) May value of 205 points and still the lowest since September 2010," FAO said.
The price indices of all commodity groups composing the FFPI averaged below May, with the largest drop registered for the Oils/Fats. The index now stands at 15.4 percent below its peak in February 2011, it added.
FAO attributed the drop in food prices to continued economic uncertainties and generally adequate foodgrain supply prospects.
FFPI is a monthly measure of the change in international prices of 55 food commodities.
The UN agency noted that the overall supply and demand situation in 2012-13 will remain adequate on account of abundant supplies of rice and sufficient exportable supplies of wheat and coarse grains.