Global food prices fall for second consecutive month on cheaper grains, sugar

Global food prices fell for a second consecutive month, as sharp declines in grain and sugar prices offset gains in vegetable oils.

The Ministry of Agriculture, Food and Rural Affairs said Friday that the Food and Agriculture Organization's food price index came in at 130.3 in June, down 0.3 percent from 130.8 in May. The index had climbed to 131.0 in April before easing to 130.8 in May and 130.3 in June, marking two straight months of decline.

By category, the grain price index led the overall decline, falling 3.5 percent from the previous month, driven by the start of the wheat harvest in the Black Sea region and an improved corn supply outlook in South America. Sugar prices dropped 5.7 percent on expanded production and rising exports from Brazil, while dairy prices fell 1.5 percent.

Vegetable oil prices bucked the trend, rising 3.8 percent on higher palm oil and rapeseed oil prices, and the meat price index edged up 0.4 percent, supported by strength in poultry and lamb prices.

Meanwhile, domestic consumer prices for farm and livestock products rose 3.2 percent in June from a year earlier, matching the overall consumer price inflation rate for the month. The ministry said it plans to closely monitor supply and demand conditions by commodity and focus all efforts on managing farm and livestock product supplies, given continued external uncertainties including international raw material prices.