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Wheat and Meat Push FAO Food Price Index Higher in June

The FAO Food Price Index, a “… trade-weighted index tracking international market prices for five key commodity groups: major cereals, vegetable oils, dairy, meat and sugar, … averaged 175.2 points in June, up 1.4 percent from May and 7.0 percent from a year earlier … The FAO Cereal Price Index rose by 4.2 percent in the month, amid surging prices of high-protein wheat due to deteriorating crop conditions in the United States of America. Maize prices, by contrast, declined amid record harvests in South America … FAO’s price indices for meat and dairy products also rose, while those for vegetable oils and sugar dropped … FAO revised down its June forecast for global wheat output in 2017, while raising those of maize and rice … World cereal stocks are expected to expand further to a new record high of around 704 million tonnes …”

Document Title: The title of the July 6, 2017 FAO News Article is “Wheat and meat push FAO Food Price Index higher in June; Global cereals supply remain robust, with stock levels headed for new record”

Organization: Food and Agriculture Organization (FAO) of the United Nations

Source: July 6, 2017 FAO News Article

Web site: The July 6, 2017 FAO News Article is posted at
http://www.fao.org/news/story/en/item/902838/icode/

The July 6, 2017 FAO Food Price Index is posted at
http://www.fao.org/worldfoodsituation/foodpricesindex/en/

The July 6, 2017 FAO Cereal Supply and Demand Brief is posted ta
http://www.fao.org/worldfoodsituation/csdb/en/

The FAO Food Price Monitoring and Analysis website is available at
http://www.fao.org/giews/food-prices/en/

Contact: Questions about the FAO Price Index may be directed by e-mail to World-Food-Situation@FAO

Summary: The text of the July 6, 2017 FAO News Article follows:

06 July 2017, Rome – Global food commodity prices rose in June, led by wheat and meat prices.

The FAO Food Price Index (http://www.fao.org/worldfoodsituation/foodpricesindex/en/ ), a monthly trade-weighted index tracking international market prices of five major food commodity groups, released today, averaged 175.2 points in June, up 1.4 percent from May and 7.0 percent from a year earlier.

The FAO Cereal Price Index rose by 4.2 percent in the month, amid surging prices of high-protein wheat due to deteriorating crop conditions in the United States of America. Maize prices, by contrast, declined amid record harvests in South America.

FAO’s price indices for meat and dairy products also rose, while those for vegetable oils and sugar dropped.

Cereal stocks on course to hit new record

Despite tightening supply conditions for high-protein wheat, global cereal supplies are likely to remain abundant in the coming year, according to FAO’s latest Cereal Supply and Demand Brief (http://www.fao.org/worldfoodsituation/csdb/en/ ), also released today.

FAO revised down its June forecast for global wheat output in 2017, while raising those of maize and rice. Global cereal production this year is likely to total 2 593 million tonnes, some 0.6 percent below that of 2016.

World cereal stocks are expected to expand further to a new record high of around 704 million tonnes.

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