ROME, ITALY — The Food and Agriculture Organization (FAO) of the United Nations’ Cereal Price Index (CPI) declined by 3% in June from the previous month, with quotations for coarse grains, wheat and rice all lower due primarily to improved production prospects in major exporting countries. The report, released on July 5, listed the CPI at 115.2 points, about 9% lower than its June 2023 value.

The FAO said the decline in wheat prices “mostly reflected seasonal pressure from ongoing harvests in the Northern Hemisphere.”

“Slightly improved production prospects in some major exporting countries, including Kazakhstan and Ukraine, along with the implementation of a temporary import ban by Turkey also contributed to the softer price tone,” the FAO said.

Corn export prices also dropped in June as harvests in Argentina and Brazil progressed with production in both countries now expected to be larger than previously anticipated, the FAO said. In addition, larger-than-expected planted area to corn in the United States, along with generally good crop conditions, also contributed to the price decline.

Among other coarse grains, world prices of barley and sorghum also fell in June. The FAO All Rice Price Index posted a modest monthly decline in June, largely reflecting generally quiet trading activities.

Despite the decline in the CPI, the FAO Food Price Index (FPI), which tracks monthly changes in the international prices of a set of globally traded food commodities, remained unchanged from the previous month at 120.6. The FPI is 2.1% below its June 2023 value and nearly 25% below its peak in March 2022, the FAO said.

The price index of vegetable oil, sugar and dairy products all rose slightly to offset the drop in cereal prices, while the Meat Price Index was unchanged from May.