World food prices increased a small amount in June, according to the United Nation’s Food and Agriculture Organization.
Its price index averaged 128 points in June, up by half a per cent from May.
The cereal price index fell 1.5 per cent to 107.4 points, now 6.8 per cent below a year ago, as global corn prices dropped sharply for a second month. Larger harvests and more export competition from Argentina and Brazil weighed on corn, while barley and sorghum also declined.
Wheat prices 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 (canola), and soy oil prices.
Meat prices rose to a record 126.0 points, now 6.7 per cent above June 2024, with all categories rising except poultry. Beef set a new peak, reflecting tighter supplies from Brazil and strong demand from the United States. Poultry prices continued to fall due to abundant Brazilian supplies.
The dairy price index edged up 0.5 per cent from May to 154.4 points, but 20.7 per cent higher than a year ago.
In a separate report, the FAO forecast global cereal production in 2025 at a record 2.925 billion tonnes, 0.5 per cent above its previous projection and 2.3 per cent above the previous year.
