Record butter, wheat surge puts food prices near 2-year high: FAO

London: Record butter prices, gains in meat and wheat’s drought-fuelled rally have pushed global food costs to near the highest in two years.

Limited export availability in the dairy market has made products including butter and cheese more expensive, while hot and dry weather in the US and Europe in the past month sent wheat futures surging. That helped a gauge of food prices rise by 1.4% in June, the United Nations’ Food & Agriculture Organization said in a report on Thursday.

“This is a month for wheat prices, and meat is firming up,” Abdolreza Abbassian, a senior economist at the FAO in Rome, said by phone. “A lot of the increases in the dairy market come from the butter situation.” Read More.

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