The Food and Agriculture Organization of the United Nations (FAO) announced that the global food price index remained unchanged in June. This stability comes amidst varied movements in different commodity categories, as reported on Friday.
The FAO Food Price Index, a key indicator that tracks monthly fluctuations in the international prices of major food commodities, held steady at 120.6 points in June, matching its revised figure for May. Compared to the same period last year, the index shows a 2.1 percent decrease, marking a significant 24.8 percent drop from its peak in March 2022.
In June, the FAO Cereal Price Index saw a decline of 3.0 percent from May levels. This decrease was driven by reduced prices for coarse grains, wheat, and rice, attributed partly to improved production forecasts in leading exporting nations.
Conversely, the FAO Vegetable Oil Price Index rose by 3.1 percent compared to May, fueled by heightened global demand for palm oil and robust biofuel sector requirements for soy and sunflower oils in the Americas.
The FAO Sugar Price Index increased by 1.9 percent following three consecutive months of decline. This uptick was influenced largely by concerns over adverse weather conditions and monsoons affecting sugar production in Brazil and India.
Meanwhile, the FAO Dairy Price Index registered a 1.2 percent increase, with butter prices hitting a two-year high due to strong retail sales, reduced milk deliveries in Western Europe during the seasonal decline, and limited inventories in Oceania.
The FAO Meat Price Index remained largely unchanged in June, as slight price increases in ovine, pig, and bovine meats nearly offset declines in international poultry meat prices driven by supply factors.
The FAO’s latest report underscores the complex dynamics shaping global food markets, highlighting both stability and volatility across different commodity groups.
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