World Food Prices Fall for 2nd Month

The FAO Food Price Index fell for a second month to 130.3 in June 2026 from 130.8 in May. Cereals cost decreased 3.5%, with wheat dropping 4.4%, as rapid harvest progress and strong supply prospects in the Black Sea region outweighed concerns over crop prospects in the US and Australia. Sugar also sank 5.7% as lower domestic ethanol prices in Brazil encouraged greater allocation of sugarcane to sugar production although persistent concerns over the potential impact of El Niño on sugar production in key producing countries, including India and Thailand, during the upcoming 2026/27 season, contained the overall decline in sugar prices. In addition, dairy fell 1.5% to 2023-lows, as prices softened across all dairy products. In contrast, meat prices edged up 0.4% to reach a fresh record high, primarily driven by higher poultry meat prices. Vegetable oils went up 3.8%, reflecting the combined effect of higher palm and rapeseed oil quotations and broadly stable sunflower oil prices.

The FAO Food Price Index edged down 0.2% to 130.8 points in May 2026 from an upwardly revised 131 points in April which was the highest reading since January 2023. Prices of cereals rose 2.6% reaching the highest level since June 2024, reflecting higher prices across all major cereals. World wheat prices rose for the fourth consecutive month, supported by smaller-than-expected harvests in major exporters, including the US, while higher fuel and fertilizer costs added further upward pressure globally. In addition, sugar prices soared 7.5% mainly driven by concerns over an anticipated tightening of global sugar supplies in the coming months. Meat costs edged up 0.1% with higher quotations for bovine and ovine meat. In contrast, dairy prices decreased 0.5% to reach the lowest level since January 2024 and vegetable oils cost tumbled 4.6% mainly driven by lower prices of palm and soy oils, which more than offset increases in rapeseed oil and sunflower oil prices.

The FAO Food Price Index rose 1.6% to 130.7 points in April 2026, marking a third consecutive monthly increase and reaching the highest since February 2023. Prices for vegetable oils jumped 5.9% to hit a fresh June-2022 high, driven by palm, soy, sunflower and rapeseed oils amid disruptions linked to the war with Iran. Prices of cereals rose 0.8% to its highest since February 2025, reflecting higher prices across major cereals, except sorghum and barley. Wheat went up 0.8% on drought concerns in parts of the US, expectations of lower rainfall in Australia, and prospects of reduced wheat plantings in 2026 due to elevated fertilizer and energy costs linked to disruptions around the Strait of Hormuz. Meat prices were up 1.2% to hit a record high. On the other hand, sugar declined 4.7%, amid expectations of ample global supplies in the current season and improved production prospects in China and Thailand. Dairy products decreased 1.1% driven by lower quotations for butter and cheese.