The Food and Agriculture Organization of the United Nations reported the FAO Food Price Index fell for the third straight month in July to 205.9 points, dropping 2 percent below its revised value of for June and 3.3 percent lower than July 2012. FAO attributed the declines to lower international prices for grains, soy and palm oil, in addition to lower sugar, meat and dairy prices.
The July FAO Meat Price Index compared to June was mostly unchanged, averaging 173.3 points. Pork and poultry prices were lower, while prices for beef and other meat rose. FAO noted there are signs that international prices for meat are easing on reduced import demand, particularly from Asian countries. The trend may be a reflection of expanded production and a build-up of domestic meat inventories.
The FAO Dairy Price Index declined 2.6 points to average 236.3 points in July. FAO attributed the decline to tightening availability of milk in Oceania and stagnating milk production in Europe, South America and the United States. Limited supplies supported milk powder prices, but increases were more than offset by a drop in cheese prices due to reduced import demand.
