The FAO dairy price index rose for the first time in 4 months of decline
"The recent price increase is based on renewed import demand for spot supplies, especially from the Middle East and East Asia, coupled with a seasonal decline in supply in Europe and limited free supply in Oceania", explain FAO analysts.
In addition, the FAO vegetable oil price index increased in June by 11.3 percent after falling for four months in a row.
- The recovery in growth reflects mainly a sharp increase in palm oil prices due to the recovery in global import demand, following the easing of COVID-19 quarantine measures in a number of countries and a reduction in concerns about possible production cuts in the face of a prolonged shortage of migrant labor. Prices for soy, sunflower and rapeseed oil also increased , stressed in the FAO.
In general, the FAO food price index for June was 93.2 points, which is 2.2 points, or 2.4%, higher than the revised figure for May 2020.
"Against the backdrop of unstable market conditions caused by the COVID-19 pandemic, prices for vegetable oils, sugar and dairy products reached their highest values in several months, recovering from a sharp fall in May, while the downward trend in prices for cereals and meat in general remained", said in the organization.
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