The outlook for world supplies of cereals and vegetable oils improved last month, contributing to the third consecutive monthly drop in global food prices, the UN’s Food and Agriculture Organisation (FAO) said yesterday. The FAO price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 206 points in June, down by 3.8 points from May, 2.8 percent below June last year and the lowest since January, as cereal prices fell on better crop prospects and reduced concern over disrupted shipments from Ukraine. The FAO’s cereal price index averaged 196.2 points, down 10.9 points from a revised 207 points in May, as wheat and maize prices fell. – Reuters