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FAO: Price Index Slightly Increased (+0.5%) in June

Vegetable oils, meat and dairy products offset the decline in cereals and sugar

The FAO Food Price Index, a benchmark for global food commodity prices, averaged 128.0 points in June 2025, up 0.5 percent from May. Although international prices of cereals and sugar declined, these declines were offset by higher prices of dairy products, meat and vegetable oils.

The index, which measures monthly changes in international prices for a range of globally traded food commodities, rose 5.8% in June 2025 from the previous year's level, but remained well below its peak in March 2022.

The FAO Cereal Price Index fell 1.5 percent in June from the previous month. World maize prices fell sharply for the second consecutive month, helped by ample supplies from Argentina and Brazil. Prices of sorghum and barley also declined. Wheat prices, in contrast, rose on weather concerns in parts of the European Union (EU), the Russian Federation and the United States of America (USA). International rice prices declined slightly, mainly for Indica varieties, reflecting weaker demand.

The Vegetable Oil Price Index rose 2.3% from May, led by increases in palm, soybean and rapeseed oils. International palm oil prices rose nearly 5% amid strong global demand. Soybean oil prices also rose in June, driven by expectations of stronger biofuel demand in Brazil and the United States, as well as higher soybean prices in South America amid strong international demand. Rapeseed oil prices also rose amid weak global supply prospects, while sunflower oil prices fell amid improved production prospects in the Black Sea region.

Meat prices rose 2.1% in June, hitting a new all-time high. World beef, pork and sheep prices rose, while poultry prices continued to decline.

Dairy prices rose by 0.5% in June from the previous month, but were less robust, with butter prices hitting a new record high due to tight supplies in Oceania and the EU, combined with continued strong demand from Asia. Cheese prices rose for the third consecutive month, while skimmed milk and whole milk powder prices fell due to weak global demand and ample supplies.

Finally, the FAO Sugar Price Index fell 5.2 percent from May, marking its fourth consecutive monthly decline and reaching its lowest level since April 2021. The decline reflects improved production prospects in Brazil, India and Thailand, where favorable weather conditions and planting expansions are expected to translate into higher output.

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