Data released on Friday revealed that the United Nations world food price index held steady in June as a rise in vegetable oil, dairy products and sugar was offset by a decline in cereals.
The U.N. Food and Agriculture Organization’s price index, which tracks the most globally traded food commodities, averaged 120.6 points in June, unchanged from May.The May figure was revised from an initial reading of 120.4.
In February 2025, the FAO index reached its lowest level for three years after the country’s food prices dropped following its peak crisis in March of that year when Russia invaded Ukraine.
On average, it was still down 2.5% when compared to June last year and remained about 24.8% below its maximum level of 2022.
According to the FAO, cereal prices decreased by three percent on a monthly basis due to improved production prospects in export countries such as Kazakhstan and Ukraine.
The corn export prices also reduced because Argentina and Brazil are expected to produce more this time than before.
The agency also said milk increased by 1.2% during June relative to May while sugar rose by 1.9%, partly driven up by lower than expected output for Brazil between April and May this year.
Vegetable oil advanced 3.1%; this is due to high rates of palm oil quotations coupled with sunflower oil with soybeans allegedly maintaining similar charges during late spring period
Nevertheless meat values remained stable; international poultry fell while higher ovine pig beef prices were registered
FAO in its separate report lifted global cereal production forecast for next year (2024) by +0.3% or +7.9 million mt putting it at new all-time record (2.854 billion tons), slightly above last year but fractionally below pre-season intentions
This change signifies better prospects for coarse grains which rose due to stronger maize forecasts both countries have made.
Approximate projections of world cereal uses in 2024/25 were 2.856 billion tons, a rise of 0.5% from the preceding season while FAO forecasted that world food cereal stocks by end-2025 would stand at 894 million tonnes.
