The United Nations News Center reported on Thursday that the Food Price Index, an indicator of global food prices, fell for the third consecutive month in June.
However, the the new report is overshadowed by looming concerns by the U.N. that the punishing heat endured by Americans in the Midwest will also see a sharp end to that price drop in July. The increase in price would be due to the effect of extreme heat on U.S. corn and soybean production, as reported by Reuters.
Here's a closer look at the current food prices index and what the outlook will be for July.
U.N. Group reports nearly all indexes down from May: The UN Food and Agriculture Organization's (FAO) press release showed the FAO Food Price Index was down four points, or 1.8 percent, from May at 201 points. Cereal was at 221 points, unchanged from May, while meat fell by 1.3 percent, dairy 1.5 percent, and sugar down 1.6 percent from May.
The oil and fats price has dropped precipitously, by 6.8 percent in May and by a further 5.6 percent in June. Prices for oils and fats dropped when crude oil price demands also dropped, lowering the demand for the food product's use for alternative energy.
Grain prices a concern: Despite the overall price drop, the group noted that the "continuing dryness and above-average temperatures in most of the major maize growing regions of the United States" would impact prices, as has also been affected by a lower forecast for Russian wheat. Rice prices remains mostly steady.
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