FAO food price index slips in June as cereal, sugar and dairy prices fall

ROME, 3rd July, 2026 (WAM) -- FAO's benchmark measure of world food commodity prices edged down in June, as lower quotations for cereals, sugar and dairy products outweighed higher quotations for vegetable oils and meat, according to new data released Friday by the Food and Agriculture Organisation of the United Nations (FAO).The FAO Food Price Index, which tracks monthly changes in the international prices of a basket of globally-traded food commodities, averaged 130.3 points in June 2026, down 0.3% from its May level but remained 2.2% higher than its year-earlier level."While the overall benchmark for international food commodity prices declined slightly in June, individual commodity markets continue to respond differently to evolving factors. In an increasingly uncertain global environment, transparent markets, timely information and predictable global trade remain essential to advance food security and strengthen the resilience of agrifood systems," said Boubaker Ben-Belhassen, Director of FAO's Markets and Trade division.

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The FAO Cereal Price Index declined by 3.5% from May, driven by lower international maize and wheat prices, but remained 2.7% higher than a year ago. Global wheat quotations dipped by 4.4% as rapid harvest progress and strong supply prospects in the Black Sea region outweighed concerns over crop prospects in Australia and the United States of America.

Additional downward pressure stemmed from a stronger United States dollar and softer energy markets amid expectations of reduced tensions around the Strait of Hormuz. World maize prices fell by 6.2%, reflecting prospects of ample supplies in exporting countries in South America and weaker ethanol demand.

By contrast, the FAO All Rice Price Index increased by 3.2% in June, as Asian demand for Indica rice strengthened, while weather concerns and elevated production, transport and marketing costs lent support to non-fragrant quotations.The FAO Vegetable Oil Price Index, by contrast, increased by 3.8% from May. Higher palm and rapeseed oil quotations, supported by stronger mandated biofuel demand and broadly stable sunflower oil prices more than offset lower soyoil prices.The FAO Meat Price Index increased by 0.5%, reaching a new record high.

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