“The United Nations food agency’s world price index fell in June to its lowest level in more than two years, pushed down by a drop in the cost of sugar, vegetable oils, cereals and dairy products.”

Analyst Comment: The outlook for US food prices remains mixed. Smaller beef cattle herds place pressure on beef supply. Chicken flocks are recovering from the avian flu. Drought conditions for several weeks have led to deteriorating crop conditions primarily impacting corn, wheat and soybeans. With rain systems moving across the US, we will monitor if condition improves.

Global food price reductions lower the risk of destabilizing popular unrest.