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% from May. The index stood 5.8% higher than a year ago, but remained 20.1% below its record high in March 2022.

The cereal price index fell 1.5% to 107.4 points, now 6.8% 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 EU, and the US.

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

Palm oil climbed nearly 5% 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 US.

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

Meat prices rose to a record 126.0 points, now 6.7% above June 2024, with all categories rising except poultry. Bovine meat set a new peak, reflecting tighter supplies from Brazil and strong demand from the US. Poultry prices continued to fall due to abundant Brazilian supplies.

The dairy price index edged up 0.5% from May to 154.4 points, marking a 20.7% annual increase.

In a separate report, the FAO forecast global cereal production in 2025 at a record 2.925 billion tonnes, 0.5% above its previous projection and 2.3% above the previous year.

The outlook could be affected by expected hot, dry conditions in parts of the Northern Hemisphere, particularly for maize with plantings almost complete.