Decrease in prices of the most important cereals
The FAO Cereal Price Index averaged 115.2 points in June, down 3.5 points (3.0 percent) compared to May and 11.4 points (9.0 percent) compared to June 2023 . World export prices for all major grains fell month after month. The decline in wheat prices mainly reflected seasonal pressure from the ongoing harvest in the Northern Hemisphere. A slight improvement in production prospects in some major exporting countries, including Kazakhstan and Ukraine, as Turkey imposed a temporary import ban, also helped to ease price levels. Corn export prices also fell in June as harvests increased in Argentina and Brazil, and production in both countries is now expected to be higher than previously expected. In addition, higher-than-previously expected corn acreage in the U.S., combined with generally good growing conditions, also contributed to the decline in prices. Among other feed grains, global prices for barley and sorghum also fell in June. The rice price index recorded a moderate monthly decline in June, largely reflecting generally calm trade activity.
Increase in prices of oils other than rapeseed
The FAO Vegetable Oil Index averaged 131.8 points in June, an increase of 4.0 points (3.1 percent) compared to May and the highest level since March 2023. The increase was due to higher ratings of palm, soybean and sunflower oil, while rapeseed oil prices remained virtually unchanged. After declining for two consecutive months, international palm oil prices recovered in June, driven mainly by a recovery in global import demand driven by increased price competitiveness. Meanwhile, global soybean and sunflower oil prices continued to rise, supported by correspondingly strong demand from the biofuel sector in the Americas and declining export opportunities in the Black Sea region. For rapeseed oil, international prices remained virtually stable in June but were well above year-earlier levels amid a tightening global supply outlook in 2024/25.
Increase in prices of butter and milk powder, decrease in cheese prices
The FAO Dairy Products Price Index averaged 127.8 points in June, up 1.5 points (1.2 percent) compared to May and 7.9 points (6.6 percent) above the corresponding figure for the year ago. In June, international butter prices reached a 24-month high, supported by increased global demand for short-term supplies due to strong retail sales and seasonally declining milk supplies in Western Europe. Butter prices were also affected by low stocks in Oceania, which coincided with the lowest level of milk production in the region. Meanwhile, skimmed milk powder prices rose, mainly reflecting continued imports from East Asia and relatively strong domestic sales in Western Europe. Global prices for whole milk powder increased slightly in June on steady import demand and seasonally lower milk production in Oceania. In turn, cheese prices declined slightly, mainly due to a slowdown in global import demand for short-term supplies.
Decrease in poultry meat prices
The FAO Meat Price Index averaged 116.9 points in June, virtually unchanged from May, and remaining 2.1 points (1.8 percent) below the same value a year ago. The decline in international poultry meat prices was almost offset by moderate or slight increases in sheep, pork and beef prices. The decline in poultry meat prices was mainly due to abundant supplies from some of the leading producing countries. In turn, sheep meat prices rose significantly due to continued high import demand and despite large export supplies as farmers began to cull their herds in response to drought in parts of Australia. Meanwhile, international pork prices rose slightly due to continued import momentum, further supported by seasonally active domestic sales, especially in North America. Global beef prices remained broadly stable, reflecting generally well-balanced global supply and demand conditions.
Increase in sugar prices after three consecutive declines
The FAO Sugar Price Index averaged 119.4 points in June, an increase of 2.3 points (1.9 percent) compared to May after three consecutive monthly declines, but still a decline of 32.8 points (21.9 percent). 6 percent) compared to the value from June last year. The increase in June was mainly due to lower-than-expected May harvest results in Brazil, which increased concerns about the potential impact of prolonged drought on sugar production in the coming months. Erratic monsoon rainfall in India, combined with a downward revision of crop forecasts in the European Union, also contributed to overall upward pressure on global sugar prices, which was partially offset by the weakening of the Brazilian real against the US dollar.
