FAO Food Price Index Stable at 120.6 Points
In June, the Food Price Index of the UN’s FAO remained unchanged at 120.6 points, matching the revised figure for May, according to a statement from the FAO press service. This stability reflects contrasting movements in commodity prices during the month.
Grain Price Index Declines by 3% in June
The average Grain Price Index for June decreased by 3.5 points, or 3%, settling at 115.2 points compared to May. The decline primarily stems from lower wheat prices influenced by seasonal factors linked to Northern Hemisphere harvests. Additionally, increased production forecasts in key exporting countries like Kazakhstan and Ukraine contributed to the downturn, compounded by Turkey’s temporary ban on wheat imports.
Corn Prices Drop on Increased Production
Corn export prices saw a notable decline in June, driven by robust harvests in Argentina and Brazil, exceeding earlier forecasts. Furthermore, expanded corn sowing areas in the USA further pressured prices downward.
Vegetable Oil Prices Rise to 131.8 Points
June saw a 3.1% increase in the average Vegetable Oil Price Index, reaching 131.8 points, the highest level since March 2023. This rise is attributed to increased prices of palm, soybean, and sunflower oils, while rapeseed oil prices remained relatively stable.
The stability of the FAO Food Price Index in June underscores the complex dynamics affecting global food markets. While some sectors, like vegetable oils, experienced price hikes, others, such as grains and corn, faced downward pressure due to favorable harvest conditions and increased production forecasts. These trends highlight the resilience and volatility inherent in global agricultural markets, influencing food security and economic stability worldwide.