World food prices: Sugar bucks the trend for June

8 July, 2011 by (comments)

Food prices remained high for June, rising one percent on the FAO Food Price Index of May and 39 percent higher than in June 2010.

 

However, cereal prices were down one percent from May, thanks to improved weather conditions in Europe and the lifting of the wheat export ban in Russia. Dry weather affected sugar production in Brazil, the world’s biggest producer, leading to a spike in sugar prices – up by 14 percent from May.

If it wasn’t for sugar, overall world food prices would have declined.

Good news comes from the FAO who estimate that cereal production in 2012 will exceed previous forecasts by 3.3 percent (or 11 million tonnes) however prices will remain volatile over the years to come due to dwindling stockpiles and increased demand, experts say.

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