Global food commodity prices edged higher in June 2025, primarily driven by increases in meat, vegetable oil, and dairy prices, according to the United Nations’ Food and Agriculture Organization (FAO). The FAO Food Price Index rose 0.5% from May, standing 5.8% higher than a year ago. Cereal prices fell overall, but wheat prices rose due to weather concerns. Sugar prices dropped significantly. FAO forecasts a record global cereal production for 2025.
World food prices tick higher in June, led by meat and vegetable oils
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TL;DR: Key points with love ❤️Global food commodity prices edged higher in June 2025, primarily driven by increases in meat, vegetable oil, and dairy prices, according to the United Nations’ Food and Agriculture Organization (FAO). The FAO Food Price Index rose 0.5% from May, standing 5.8% higher than a year ago. Cereal prices fell overall, but wheat prices rose due to weather concerns. Sugar prices dropped significantly. FAO forecasts a record global cereal production for 2025.
Trending- 1 June 2025: FAO Food Price Index averaged 128.0 points, up 0.5% from May
- 2 June 2025: Cereal price index fell 1.5%
- 3 June 2025: Vegetable oil price index rose 2.3%
- 4 June 2025: Sugar prices dropped 5.2%
- 5 June 2025: Meat prices rose to a record 126.0 points
- 6 June 2025: Dairy price index edged up 0.5%
- 7 2025: FAO forecasts global cereal production at a record 2.925 billion tonnes
- Increased cost of food commodities globally
- Potential impact on inflation rates
- Outlook for global cereal production could be affected by expected hot, dry conditions in parts of the Northern Hemisphere
What: Global food commodity prices increased, specifically for meat, vegetable oil, and dairy.
When: June 2025.
Where: Globally, with specific market influences from Brazil, Argentina, Russia, the European Union, the United States, India, and Thailand.
Why: Meat prices rose due to tighter supplies (Brazil) and strong demand (United States). Vegetable oil prices increased due to strong import demand (palm oil) and expected higher demand from the biofuel sector (soy oil, supported by policy measures in Brazil and the United States). Wheat prices rose due to weather concerns in Russia, the EU, and the US. Maize prices fell due to larger harvests and export competition. Sugar prices dropped due to improved supply prospects.
How: The United Nations’ Food and Agriculture Organization (FAO) tracks monthly changes in a basket of internationally traded food commodities to compile the FAO Food Price Index.