Global food prices edged lower in June, marking a second consecutive monthly decline, as falling prices for sugar, cereals, and dairy products outweighed increases in vegetable oils and meat, the United Nations Food and Agriculture Organization (FAO) said on Friday.
The FAO Food Price Index, which tracks monthly changes in the prices of internationally traded food commodities, averaged 130.3 points in June, down from 130.8 points in May.
The index had already declined in May after reaching a three-year high in April, when the conflict involving Iran drove up vegetable oil prices.
According to the FAO, the June reading was 1.7% higher than a year earlier but remained 18.7% below the record peak reached in March 2022, following the outbreak of the war in Ukraine.
Cereal and Sugar Prices Fall
The FAO Cereal Price Index fell 3.5% from May.
Wheat prices came under pressure as rapid harvest progress and expectations of abundant supplies from the Black Sea region boosted market availability.
Corn prices also declined due to anticipated strong supplies from South America and lower crude oil prices.
In contrast, the FAO Rice Price Index rose 3.2%, supported by strong Asian demand for Indica rice.
Sugar prices dropped 5.7%, as lower ethanol prices in Brazil encouraged mills to divert more sugarcane toward sugar production. However, concerns over the potential impact of El Niño on crop production in India and Thailand limited the overall decline.
Meat and Vegetable Oils Rise
Dairy prices fell 1.5% amid increased global supplies.
Meanwhile, the FAO Meat Price Index rose 0.4% from the previous month, reaching a new record high, led by poultry prices amid strong global demand.
Vegetable oil prices increased 3.8%, driven by higher prices for palm oil and rapeseed oil, partly due to demand from the biodiesel industry.
Global Grain Production Outlook
In a separate report, the FAO forecast global cereal production for 2026 at 2.983 billion metric tons, largely unchanged from its previous monthly estimate.
While the forecast is 1.9% below the record harvest achieved in 2025, it would still represent the second-largest global cereal crop on record.
