FAO Food Price Index Edges Down Amid Diverging Commodity Price Movement

Oluchi Chibuzor 

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 by Food and Agriculture Organisation of the United Nations (FAO).

The FAO Food Price Index, which was released yesterday, 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 percent from its May level but remained 2.2 percent higher than its year-earlier level.

Speaking about the new data, the Director of FAO’s Markets and Trade division, Boubaker Ben-Belhassen, said 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,” he said.

However, the report stated that the FAO Cereal Price Index declined by 3.5 per cent from May, driven by lower international maize and wheat prices, but remained 2.7 per cent higher than a year ago. 

According to the report, “wheat quotations dipped by 4.4 per cent 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 per cent, 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 per cent 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 per cent 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 per cent, reaching a new record high. International poultry meat prices increased, due in part to temporarily tighter domestic availability following production adjustments in response to earlier oversupply, while pig and bovine meat prices declined.

“The FAO Dairy Price Index declined by 1.5 per cent from the previous month, reflecting lower prices on skim milk powder, whole milk powder and butter, along with an eleventh consecutive monthly drop in international cheese prices as export supplies continued to exceed global import demand.

“The FAO Sugar Price Index decreased by 5.7 per cent from May, driven down by lower domestic ethanol prices in Brazil along with depreciation of the Brazilian real. Ongoing concerns over the potential impact of El Niño on sugar production in India and Thailand contained the overall decline in international sugar prices.”