FAO: Global Food Prices Steady in June, Cereal Production Hit Record High

Dike Onwuamaeze

The Food and Agriculture Organisation (FAO) has stated that the benchmark for world food commodity prices remained stable in June.  

The FAO Food Price Index, which track monthly changes in the international prices of a set of globally-traded food commodities, averaged 120.6 points in June, the same as its revised figure for May.

It explained that the June’s index was 2.1 per cent lower than its year-earlier value and 24.8 per cent below its March 2022 peak.

FAO Cereal Price Index declined by 3.0 per cent in June from May, with quotations for coarse grains, wheat, and rice all down, driven in part by improved production prospects in major exporting countries.

However, its Vegetable Oil Price Index rose 3.1 per cent from May, buoyed by reviving global import demand for palm oil and firm demand from the biofuel sector in the Americas for soy and sunflower oils.  

“The FAO Sugar Price Index increased by 1.9 per cent from May after three consecutive monthly declines, largely due to concerns over the likely impact of adverse weather and monsoons on production in Brazil and India.  

“The FAO Dairy Price Index rose by 1.2 percent, with international quotations for butter reaching a 24-month high due to increased global demand for near-term deliveries amidst strong retail sales, seasonally falling milk deliveries in Western Europe, and low inventories in Oceania.

“The FAO Meat Price Index was virtually unchanged in June, as slight increases in the world prices of ovine, pig and bovine meats nearly offset a supply-led decline in international poultry meat prices,” the statement added.

Meanwhile, FAO updated its forecast for global cereal production in 2024, pegging it at 2,854 million tonnes, a new all-time high.