Find out how global food prices changed in June 2024: Dairy and vegetable oil prices went up, while cereal prices dropped. How could this affect your grocery shopping and food options? Read more.
A pressing issue is food costs; some encouraging news comes from the FAO Food Price Index (FFPI) for June 2024. After three months of increasing rates, it remained consistent at 120.6 points, much-needed steadiness. What is underlying these figures? Vegetable oil, sugar, and dairy goods all showed gains in June; they helped to offset declining grain prices. Meat costs remained constant.
The FAO Food Price Index: A Beacon of Stability Amid Global Shifts
The FAO Food Price Index (FFPI) reached 120.6 points in June 2024, unchanged from May. However, it is 2.1% below a year ago. It is down 24.8%, showing a return to more stable global food prices even if it stabilized after hitting 160.3 points in March 2022.
A Deep Dive into the FAO Cereal Price Index’s Pivotal June Decline
| Cereal | June 2023 Price (points) | May 2024 Price (points) | June 2024 Price (points) |
|---|---|---|---|
| Global Cereal Index | 126.6 | 118.6 | 115.2 |
| Maize | 130.8 | 122.1 | 118.4 |
| Barley | 120.5 | 112.3 | 107.8 |
| Sorghum | 128.2 | 120.6 | 116.1 |
The FAO Cereal Price Index dropped to 115.2 points in June, indicating significant global market shifts. Northern hemisphere seasonal harvest pressures drove supply higher, naturally lowering prices. Better production forecasts also raised global supply estimates in Kazakhstan and Ukraine.
Meanwhile, Türkiye’s temporary import restriction on grains reduced global demand and thus affected prices. Improving harvests in Argentina and Brazil and more than projected maize plantings in the United States further drove down maize prices. Prices for barley and sorghum also dropped.
This FAO Cereal Price Index drop combines policy-driven, seasonal, and regional elements. Knowing these clarifies the swings in the global grain market and emphasizes the need to keep an eye on local and international events.
Unpacking the Surge: Key Drivers Behind the FAO Vegetable Oil Price Index Rise
| Month | Vegetable Oil Price Index | Change (%) | Key Drivers |
|---|---|---|---|
| March 2023 | 126.0 | – | Baseline |
| April 2023 | 128.0 | 1.6% | Increased palm oil demand |
| May 2023 | 128.6 | 0.5% | Stable rapeseed oil prices |
| June 2023 | 131.8 | 3.1% | Strong biofuel sector demand, declining Black Sea export availabilities |
In June, the FAO Vegetable Oil Price Index registered 131.8 points. Rising costs for palm, soy, and sunflower oils were the main forces behind this. Global import demand helped palm oil prices recover. Strong biofuel demand drove soy and sunflower oil prices down, decreasing Black Sea area exports. Prices for rapeseed oil were steady, unlike those of the others.
A Closer Look at the FAO Dairy Price Index’s Impressive June Growth
| Month | Dairy Price Index |
|---|---|
| July 2023 | 119.8 |
| August 2023 | 120.5 |
| September 2023 | 121.3 |
| October 2023 | 122.4 |
| November 2023 | 123.1 |
| December 2023 | 124.0 |
| January 2024 | 125.2 |
| February 2024 | 126.0 |
| March 2024 | 126.4 |
| April 2024 | 126.7 |
| May 2024 | 126.9 |
| June 2024 | 127.8 |
June saw the FAO Dairy Price Index rise to 127.8 points, a 1.2% increase over May. Worldwide solid demand and limited stockpiles in Oceania drove international butter prices to reach a 24-month high and mostly climb. While whole milk powder only changed little, steady shipments from Eastern Asia also helped to drive skim milk powder costs.
Fascinatingly, a slowing down in world import demand caused cheese prices to drop even as these dairy sectors grew gradually.
Navigating the Meat Market: Stability and Shifts in the FAO Meat Price Index
| Meat Type | June 2024 Price Index | Change from May 2024 | Change from June 2023 |
|---|---|---|---|
| Poultry | 116.9 | Stable | -1.8% |
| Ovine | Rising | Slight Increase | Significant Increase |
| Pig Meat | Increase | Slight Increase | Stable |
| Bovine | Stable | No Change | Stable |
In June, the FAO Meat Price Index remained constant at 116.9 points. The abundance of poultry meat reduced costs. Prices for ovine meat shot sky on solid import demand. She was supported by consistent import demand and solid domestic sales in North America, and pig meat prices only marginally increased. Prices for bovine meat stayed the same, showing equitable worldwide demand and supply.
The Bottom Line
With a balancing effort in world food markets, June 2024 kept the FAO Food Price Index at 120.6 points. Rising dairy, sugar, and vegetable oils balance out drops in grain costs. Thanks to better output in certain important nations and good harvests, the FAO Cereal Price Index dropped to 115.2 points. Driven by strong demand and restricted export availability, the FAO Vegetable Oil Price Index climbed to 131.8 points. With the FAO Dairy Price Index rising to 127.8 points—led by strong demand for butter and milk powders—dairy goods continued an upward trend. Reflecting balanced supply and demand in the meat market, the FAO Meat Price Index remained unaltered. These many price swings draw attention to the complexity of the world food market. Policymakers, traders, and stakeholders must keep updated on these developments to make intelligent judgments under evolving market circumstances.
Key Takeaways:
- The FAO Food Price Index (FFPI) remained steady at 120.6 points, balancing increases in vegetable oil, sugar, and dairy products with a decrease in cereal prices.
- The FFPI is now 2.1% lower than the previous year and 24.8% below its peak in March 2022.
- The FAO Cereal Price Index dropped to 115.2 points, a 3.0% decrease from May, contributed by falling prices in all major cereals due to favorable harvest conditions.
- The FAO Vegetable Oil Price Index surged to 131.8 points, a 3.1% month-over-month increase, driven by higher palm, soy, and sunflower oil prices.
- The FAO Dairy Price Index rose to 127.8 points, marking a 1.2% increase from May, bolstered by record high butter prices and steady demand for milk powders.
- The FAO Meat Price Index held steady at 116.9 points, with notable declines in poultry prices and significant increases in ovine meat prices.
Summary:
The FAO Food Price Index (FFPI) for June 2024 showed a steady rise at 120.6 points, indicating a return to more stable global food prices. Vegetable oil, sugar, and dairy goods all showed gains, offseting declining grain prices. Meat costs remained constant, reflecting balanced supply and demand in the meat market. The FAO Cereal Price Index dropped to 115.2 points in June, driven by seasonal harvest pressures in the Northern hemisphere, improved harvests in Argentina and Brazil, and more than projected maize plantings in the United States. The FAI Vegetable Oil Price Index registered 131.8 points, driven by rising costs for palm, soy, and sunflower oils. The FAI Dairy Price Index rose to 127.8 points in June, driven by worldwide demand and limited stockpiles in Oceania. The FAI Meat Price Index remained constant at 116.9 points, with poultry meat reducing costs and ovine meat prices skyrocketing on solid import demand.
