03.07.202608:11:07UTC+00World Food Prices Fall for 2nd Month

The FAO Food Price Index declined for a second consecutive month in June 2026, slipping to 130.3 from 130.8 in May. Cereal prices fell 3.5%, led by a 4.4% drop in wheat, as rapid harvest progress and strong supply prospects in the Black Sea region more than offset concerns about crop conditions in the United States and Australia. Sugar prices also dropped, falling 5.7%. This was largely due to lower domestic ethanol prices in Brazil, which prompted a greater share of sugarcane to be diverted to sugar production. However, ongoing worries about the potential impact of El Niño on sugar output in major producers such as India and Thailand during the upcoming 2026/27 season limited the overall decline in sugar prices.

Dairy prices decreased by 1.5%, reaching their lowest level since 2023, with prices easing across all dairy product categories. In contrast, meat prices inched up by 0.4% to a new record high, driven mainly by rising poultry meat prices. Vegetable oil prices increased by 3.8%, reflecting a combination of higher palm and rapeseed oil quotations alongside largely stable sunflower oil prices.