The FAO food price index remained stable in June

By: Trademagazin Date: 2024. 07. 05. 12:10

According to the Friday report of the UN Food and Agriculture Organization (FAO), the world market index of food raw materials did not change in June, as the increase in the international quotation of vegetable oils, sugar and dairy products offset the decrease in the price of cereals.

The FAO food price index – which tracks the monthly price changes of the most important food commodities in international trade – showed an average of 120.6 points in June, which is the same as the revised May value. The index is down 2.5% from a year ago and is 24.8% below its March 2022 peak.

The FAO price index for cereals was 3.0% lower in June compared to May; quotations for cereals, wheat and rice all fell, partly due to improved production prospects in major exporting countries.

The vegetable oil price index, on the other hand, rose 3.1% in June, driven by a pick-up in global import demand for palm oil and strong demand from the Americas biofuels sector for soybean and sunflower oil.

The FAO sugar price index rose 1.9% in June after three months of decline, largely due to concerns over adverse weather and the expected impact of the monsoon, which will affect production in Brazil and India.

Dairy prices rose 1.2%, with international butter prices climbing to their highest level in two years on increased global demand for short-haul shipments, strong retail sales, seasonally declining milk production in Western Europe and the Pacific amid low stocks in its area.