FAO Food Price Index inches higher

The benchmark for global food commodity prices, including cereal (grain) prices, rose slightly in June, rising 0.5%, according to a report from the Food and Agriculture Organization (FAO) of the United Nations, released on July 4.

The FAO Food Price Index (FFPI) averaged 128.0 points in June, up from 127.3 in May. While the price indices for cereals and sugar decreased, they were outweighed by increases in the indices for dairy products, meat and vegetable oils. Overall, the FFPI was 7.0 points (5.8%) higher than its level in June 2024 but remained 32.2 points (20.1%) below its peak reached in March 2022.

The Cereal Price Index averaged 107.4 points in June, down 1.6 points (1.5%) from May and 7.8 points (6.8%) below its value a year ago. Global maize (corn) prices fell sharply for the second consecutive month, as rising seasonal supplies in Argentina and Brazil intensified competition across major export origins.

World prices of sorghum and barley also decreased in June. By contrast, despite harvest pressure from the northern hemisphere, international wheat prices increased month-on-month, mostly reflecting weather concerns in some key producing areas, including Russia and parts of the European Union and the United States.

The FAO All Rice Price Index fell by 0.8%, driven by weaker demand for Indica varieties.

The Vegetable Oil Price Index averaged 155.7 points in June, up 3.5 points (2.3%) from the previous month and 18.2% above its June 2024 level. The increase mainly reflected higher prices for palm, rapeseed and soy oil, more than offsetting a slight decline in sunflower oil prices.

International palm oil prices rose by nearly 5% in June, largely underpinned by strong global import demand amid increased price competitiveness. Soy oil prices also rose in June, influenced by expectations of higher feedstock demand from the biofuel sector following announcements of supportive policy measures in Brazil and the United States. Rapeseed oil prices were bolstered by expectations of continued tight global supplies in 2025-26. By contrast, global sunflower oil prices declined due to anticipation of increased production in the Black Sea region.

Other highlights from the FAO report included:

• The Meat Price Index averaged 126.0 points in June, rising 2.6 points (2.1%) from May and up 7.9 points (6.7%) from its value a year earlier, marking a new record high. The increase was driven by higher prices across all meat categories, except poultry.
• The Dairy Price Index averaged 154.4 points in June, up 0.8 points (0.5%) from May and 26.5 points (20.7%) from its value a year ago. The butter price index recorded the largest monthly increase, rising by 2.8 percent to a new record of 225 points.
• The Sugar Price Index averaged 103.7 points in June, down 5.7 points (5.2%) from May, marking the fourth consecutive monthly decline and the lowest level since April 2021, when it averaged 100.0 points.