The Food and Agriculture Organization (FAO) world price index fell in June to its lowest level in more than two years due to lower prices for sugar, vegetable oils, cereals and dairy products.

Today, Friday, the organization said its index, which tracks the prices of the world’s best-selling food items, averaged 122.3 points in June, up from 124.0 points after being adjusted the previous month.

Initially, the May value was 124.3.

The June value was the lowest since April 2021, meaning the index is now 23.4% below the high reached in March 2022 after the start of the Russian invasion of Ukraine.

In a separate report on cereal supply and demand, FAO expects global cereal production to reach 2.819 billion tonnes this year, slightly above last month’s estimates and up 1.1% from 2022 levels.

The FAO said higher expectations were driven almost entirely by better prospects for global wheat production, with forecasts up 0.9% to 783.3 million tonnes.

The FAO Cereal Price Index fell 2.1% in June from the previous month, driven by lower prices for corn, barley, sorghum, wheat and rice.

The vegetable oil price index fell 2.4% m/m, the lowest level since November 2020, due to lower global palm and sunflower oil prices.

The FAO said the sugar price index fell 3.2 percent since May, the first decline after four consecutive monthly increases, mainly due to an improvement in Brazil’s sugar cane crop and slowing global import demand.

The dairy price index fell 0.8% from May, while the meat price index remained unchanged.