Global food prices in June continued to decline, according to the latest review of the FAO (Food and Agriculture Organization of the United Nations).
The food price index averaged 122.3 points last month, down 1.4 percent from May and 23.4 percent from its peak in March 2022.
The Cereal Price Index was down 2.1 percent in June compared with May and 23.9 percent year-over-year. The decrease was due to a drop in world prices for all major grains. Feed grain fell in price most of all – by 3.4%.
The vegetable oil price index fell 2.4% from May to its lowest level since November 2020. “The continuing decline in the value of this index is due to a drop in world prices for palm and sunflower oils amid a slight increase in soybean and rapeseed oil prices,” the survey explains.
The index of prices for dairy products for the month decreased by 0.8%, in annual terms – by 22.2%. “The decrease registered in June is connected with decrease of the international prices for cheese, conditioned by availability of considerable export supply, first of all, in Western Europe against the background of seasonal increase of milk production and some reduction of retail sales,” is said in the review.
The meat price index remained virtually unchanged in June, while in annual terms it decreased by 6.4%. “The growth of international quotations for poultry and pork in June was almost completely leveled out by a decrease in quotations for beef and mutton, – explained the experts. – International prices for poultry continued to rise, which is explained by high import demand from East Asia. In turn, growth of pork prices is connected with remaining limited supply in leading producing regions, primarily in the European Union.
The June sugar price index was 3.2% lower than in May and was its first decline since an uninterrupted four-month rise. On an annualized basis, international quotations are still 29.7% higher. “The decline in international sugar prices recorded in June is mainly due to a good sugarcane crop in Brazil and reduced import demand globally, especially from China, the world’s second largest sugar importer,” the survey said.
The FAO Food Price Index is a weighted average of international prices of five major food commodity groups.
