Food Prices Fall Globally but Meat Hits Record High

Global food prices fell slightly in June, according to the Food and Agriculture Organization of the United Nations (FAO). The FAO Food Price Index averaged 130.3 points, down from 130.8 points in May.

Lower prices for sugar, cereals, and dairy products outweighed increases in vegetable oil and meat prices. Although June's figure was 1.7% higher than a year earlier, it remained 18.7% below the all-time high recorded in March 2022.

The cereal price index fell 3.5% from May, driven mainly by rapid progress in the Black Sea harvest and ample corn supplies in South America. Rice was the exception, with prices rising 3.2% amid strong demand from Asia. Sugar prices fell 5.7% after lower ethanol prices in Brazil prompted mills to divert a larger share of sugarcane toward sugar production.

The meat price index, by contrast, rose slightly, up 0.4% to a new record high, driven mainly by poultry. Vegetable oil prices jumped 3.8% on strong demand for biodiesel.

In a separate forecast, the FAO estimated that global cereal production in 2026 will reach 2.983 billion metric tons, the second-highest harvest on record.

(Reuters, Max)