The Food and Agriculture Organization (FAO) of the United Nations has lowered its world cereal production forecast by 23 million metric tons (MMT) to 2.396 MMT. FAO lowered the U.S. corn crop by 25 MMT to 350 MMT due to ongoing dryness. World wheat production was lowered by 2 MMT to 678 MMT.
Link to full world production highlights.
The FAO Food Price Index fell for the third consecutive month in June 2012, dipping 1.8% from May to its lowest level since September 2010. The four-point drop in June brought the index to 201 points from a revised level of 205 points in May 2012. The index now is now 15.4% below its peak in February 2011.
The average prices of all commodity groups in the Index were below May levels, with the largest drop registered for oils and fats. "Continued economic uncertainties and generally adequate food supply prospects kept the index down although growing concerns over dry weather sent prices of some crops higher toward the end of the month," states the group.