Prices for global agricultural products fell in July to their lowest level in almost six years, the United Nations Food and Agriculture Organization (FAO) said on Thursday. The FAO Food Price Index averaged 164.6 points in July, down 1.7 points or one per cent from June and almost 40 points (19.4%) less than a year earlier. The index measures prices on international markets of five major food commodity groups: cereals, meat, dairy products, vegetable oils and sugar. The drop in food prices was mainly caused by falling prices of dairy products and vegetable oils. According to FAO figures, the dairy price index dropped 7.2% from the previous month, mainly due to lower import demand from China, the Middle East and North Africa and an increase in EU milk production. Vegetable oil prices were 5.5% lower than in June, reaching their lowest value since July 2009. The FAO says the decrease was primarily caused by a fall in international palm oil prices due to increased production in Southeast Asia. Continued weakness in crude oil prices also had an impact on vegetable oil prices. Meat prices for bovine and pig meat as well as poultry remained stable. The overall decline in food prices does not apply to cereal prices. The FAO Cereal Price Index averaged 166.5 points in July, up 2% from June, but still around 10% below July 2014 levels. Unfavourable weather conditions for maize and wheat in North America and Europe kept cereal prices rising. Rice prices remained on a falling trend. The sugar price index rose by 2.5% compared to June, mainly due to poor harvesting conditions in the main producing region of Brazil. (ab)