World food prices tick higher in June, led by meat and vegetable oils

In June, global food commodity prices saw a slight rise, primarily fueled by higher costs in meat, vegetable oils, and dairy, as reported by the UN Food and Agriculture Organization (FAO). The FAO Food Price Index, which measures the monthly change in international prices of a basket of food commodities, increased to an average of 128 points, marking a 0.5 percent rise from May. This figure is 5.8 percent higher than the same time last year, although it is still 20.1 percent lower than its record high in March 2022.

The vegetable oil price index recorded a 2.3 percent increase from May, reaching 155.7 points, driven by rising palm, rapeseed, and soy oil prices. Meat prices also climbed to a new high of 126 points. Conversely, the cereal price index fell by 1.5 percent due to significant declines in global maize prices, influenced by larger harvests and competition from Argentinian and Brazilian exports.

Sugar prices dropped by 5.2 percent to 103.7 points, the lowest since April 2021, reflecting better supply conditions in Brazil, India, and Thailand. Meanwhile, a forecast report by the FAO anticipates global cereal production in 2025 to hit a record 2.925 billion tonnes, an increase of 0.5 percent from the previous projection, despite potential disruptions from expected dry conditions in the Northern Hemisphere.