FAO World Food Price Index drops in June
ROME, July 9 (Xinhua) -- World food prices dropped for the 14th time in 15 months in June, despite f…ROME, July 9 (Xinhua) -- World food prices dropped for the 14th time in 15 months in June, despite fears that high temperatures from the El Nino phenomenon will drive prices for grains and cereals higher, the United Nations Food and Agriculture Organization (FAO) reported Thursday.
Also on Thursday, FAO estimated production of cereals this year would total 2.53 billion metric tons, down 1.1 percent compared to production last year but above full-year estimates released a month ago.
The overall FAO World Food Price Index stood at 165.1 points, 0.9 percent below its level in May. The last time the index was so low was in September 2009.
Rice prices were stable despite a slight uptick in demand, which was absorbed by rice stocks.
FAO said problems in Africa could put pressure on prices going forward due to severe weather, conflict, and political instability, especially in the production of cereals.
El Nino, a weather phenomenon impacting the Pacific rim, could also hurt production in some countries, FAO said.
The next installment of the FAO index, which is based on a basket of 55 goods and 73 price quotations in five major food commodity groups, will be released on August 6.