By Chinyere Anyanwu
Global food prices remained steady in June as increases in vegetable oil, sugar, and dairy product prices balanced out a decrease in cereal prices. The United Nations Food and Agriculture Organization (FAO) reported in its global food index for June 2024 that the overall FAO price index averaged 120.6 points, virtually unchanged from May with only a 0.2 percent increase.
According to the report, global food prices in June were 2.1 percent below their value a year ago and 24.8 percent below their peak of 160.3 points in March 2022.
Cereal prices averaged 115.2 points in June, down 3.0 percent from May and 9.0 percent from June 2023. The FAO noted that wheat prices declined due to seasonal pressure from ongoing harvests and improved production prospects in major exporting countries like Kazakhstan and Ukraine. Additionally, a temporary import ban by Turkey contributed to the price decline. Vegetable oil prices surged by 3.1 percent, rising from 127.8 points in May to 131.8 points in June, the highest level since March 2023. This increase was driven by higher prices for palm, soy, and sunflower oils, while rapeseed oil prices remained unchanged. The FAO highlighted that international palm oil prices rebounded in June due to increased global import demand driven by greater price competitiveness.
The dairy price index increased by 1.2 percent, from 126.3 points in May to 127.8 points in June, which is 6.6 percent higher than its value in June 2023. The rise was driven by butter prices reaching a 24-month high, influenced by low inventories in Oceania, coinciding with the region’s lowest point in milk production.
Meat prices remained stable in June, maintaining 116.9 points, the same as in May. Although international poultry prices fell, there were slight increases in the prices of ovine, pig, and bovine meats. The meat index is 1.8 percent lower than its value a year ago.
After three consecutive monthly declines, global sugar prices averaged 119.4 points in June, up 1.9 percent from May.
In summary, while certain commodities like vegetable oil and dairy products saw significant price increases, these were balanced out by decreases in cereal prices and stable meat prices, leading to an overall steady global food price index for June 2024.