Today, the Food and Agriculture Organization (FAO) of the United Nations released it's monthly update on global food trade pricing. The overall "Food Price Index" that combines all categories did decline slightly, but less than the previous month. The index is still substantially higher than it was at a comparable period during the last cycle.
During June, the Cereal price index remained essentially flat, mirroring the trend from the previous cycle but at a new higher level. There had been hopes that record grain planting for the 2012, US growing season would help to increase stores this fall and lead to significant price drops. A troubling and spreading drought is developing in the American Midwest. Without some timely rainfall during the key period of corn pollination there could be significant crop loss. This possibility is already leading to price increases for current and future US grains. It is impossible to know yet whether this drought, and all the other weather extremes of this year, are the result of Climate Change. Many climate experts believe that it is.
Dairy prices, which had shown two months of significant decline, continued to drop, but at a slower rate.
Oils were down for June, but that has only just now reversed an upward trend that began seven months ago.
Sugar prices are not really linked to the same trends as the other commodities because tropical sugarcane production is less seasonal and much less tied to yearly planting decisions.