The FAO (Food and Agriculture Organisation of the United Nations) reported that the price index of international food commodity prices declined again in June, championed by price decreases for all significant cereals and most types of vegetable oils.
The FAO Food Price Index tracks monthly changes in the international prices of commonly-traded food commodities, averaging 122.3 points in June, down 1.4 percent from May and 23.4 percent from its peak in March 2022.
The FAO Cereal Price Index declined by 2.1 percent from May.
Coarse grain quotations globally decreased in June by 3.4 percent, propelled primarily by increased maize supplies from ongoing harvests in Argentina and Brazil and improved output prospects in producing areas of the USA.
International wheat prices dropped by 1.3 percent as harvesting in the northern hemisphere began, driven by the availability of supplies and a lower export tax in the Russian Federation, coupled with improved conditions in the USA international rice prices, which declined by 1.2 percent amid lowered demand for non-indica varieties and Pakistan efforts to attract export sales.
The Vegetable Oil Price Index of the FAO declined by 2.4 percent from May, as lower world prices of palm and sunflower oils more than offset increases in quotations for soy and rapeseed oil, influenced by weather conditions in major growing regions.
The Dairy Price Index declined by 0.8 percent, driven by lower international cheese prices, despite the rise of world butter prices led by active demand for spot supplies, primarily from the Middle East.
Decreasing by 3.2 percent, the Sugar Price Index experienced its first drop after four consecutive monthly increases, mainly fuelled by good progress of the sugarcane harvest in Brazil and sluggish global import demand, particularly from China.
The Meat Price Index was almost unchanged in June. Poultry meat prices rose due to heightened East Asian import demand as the region has experienced ongoing supply challenges due to the widespread avian influenza outbreaks. International pig meat prices also rose. However, bovine and ovine meats decreased due to increased exportable availabilities from Oceania.