Source:  MEATINGPLACE, 7/7/11

A composite index of world commodity prices edged higher in June as sugar prices surged, outweighing a pullback in wheat, while meat prices also increased slightly, the United Nations Food and Agriculture Organization said Thursday.

A 3 percent increase in poultry prices, which set a new record, bolstered the group’s meat index. Pork prices declined somewhat while beef, already at high levels, rose modestly.

The FAO Food Price Index averaged 234 points in June 2011, up 1 percent from May and up 39 percent from a year ago. The index hit an all-time high of 238 points in February.

Cereal prices overall fell 1 percent in June from May but were still 71 percent higher than a year ago. Better weather in Europe and the announced lifting of Russia’s export ban depressed wheat prices. However, tight old-crop 2010 supplies and continued wet U.S. weather supported corn markets.

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