World food prices tick higher in June, led by meat and veg oils

Global food commodity prices edged higher in June, supported by higher meat, vegetable oil and dairy prices, the United Nations' Food and Agriculture organisation said on Friday.

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The FAO Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 128.0 points in June, up 0.5 per cent from May. The index stood 5.8 per cent higher than a year ago, but remained 20.1 per cent below its record high in March 2022.

The cereal price index fell 1.5 per cent to 107.4 points, now 6.8 per cent below a year ago, as global maize prices dropped sharply for a second month. Larger harvests and more export competition from Argentina and Brazil weighed on maize, while barley and sorghum also declined.

Wheat prices, however, rose due to weather concerns in Russia, the European Union, and the United States.

The vegetable oil price index rose 2.3 per cent from May to 155.7 points, now 18.2 per cent above its June 2024 level, led by higher palm, rapeseed, and soy oil prices.

Palm oil climbed nearly 5 per cent from May on strong import demand, while soy oil was supported by expectations of higher demand from the biofuel sector following announcements of supportive policy measures in Brazil and the United States.

Sugar prices dropped 5.2 per cent from May to 103.7 points, the lowest since April 2021, reflecting improved supply prospects in Brazil, India, and Thailand.