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Un says global food prices down again

July 5, 2012
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ROME—A U.N. agency says world food prices have dropped in June for a third straight month to their lowest level in nearly two years but that dry weather in recent weeks could cause a spike.

The U.N. Food and Agriculture Organization said in its monthly report Thursday that global prices of a basket of food commodities fell by 1.8 percent from May to their lowest level since September 2010.

The agency also lowered its forecast for 2012 world cereal production but is still forecasting a record harvest up 2 percent from the previous high registered last year.

The Rome-based agency keeps a close watch on volatile global prices because rises in the prices of staple food have led to violence in some countries in recent years.

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