Wheat prices fell in July driven by large global supplies and prospects for abundant export availabilities from the Black Sea region.
TheFAO Food Price Indexaveraged 161.9 points in July 2016, slipping 0.8% (1.3 points) below its level in June and 1.4% below its level of July 2015.
The overall decline of the index reflected drops in international quotations of grains and vegetable oils, which more than offset firmer dairy, meat and sugar prices.
The FAO Food Price Index is a trade-weighted index tracking international market prices for five major food commodity groups.
The FAO Cereal Price Index fell 5.6% from June, led by a sharp drop in maize prices due to favorable weather conditions in the key growing regions of the U.S., the world's largest maize producer and exporter, the FAO said. Wheat prices also fell in July, mainly driven by large global supplies and prospects for abundant export availabilities from the Black Sea region. By contrast, rice prices strengthened, as dwindling availabilities underpinned Basmati rice and long-grain quotations.
Falling for the third consecutive month, the FAO Vegetable Oil Price Index dropped 2.8% from its level in June. The slide mainly was driven by the price of palm oil, which dropped to a 5-month low, reflecting a seasonal recovery in production in Southeast Asia combined with subdued global import demand. International prices for soybean, sunflower and rapeseed oil also eased on better-than-earlier anticipated supply prospects.