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Global food index fell in June, according to FAO, in a movement driven by sugar, cereals, and dairy. Even so, meats and vegetable oils still pressure the international market.
World food prices fell again in June 2026, according to data released by the United Nations Food and Agriculture Organization, FAO, on July 3. The FAO Food Price Index stood at 130.3 points, below the 130.8 points recorded in May.
The result marked the second consecutive monthly decline of the indicator, monitored by governments, companies, and investors in various regions of the world. The drop was mainly driven by the prices of sugar, cereals, and dairy, while the rise in vegetable oils and meats limited a stronger decline.
FAO indicator tracks foods traded in global commerce
The FAO index measures the monthly variation of a basket of agricultural commodities traded internationally, such as cereals, meats, dairy, sugar, and vegetable oils. This indicator is used as a reference to understand the direction of food prices in global trade.
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In the case of Brazil, these fluctuations gain special weight, as the country is among the major global suppliers of sugar, corn, soy, and meats. Changes in international prices can affect producers, exporters, and chains linked to agribusiness.
June drop follows recent peak recorded in April
The decline in June occurred after a drop already recorded in May. Before that, in April, the index had reached the highest level in three years, amid tension involving Iran, Israel, and the United States, which helped boost vegetable oil prices.
Even with the recent drop, the June index was 1.7% above the level observed a year earlier. The indicator, however, remained 18.7% below the record set in March 2022, after Russia’s invasion of Ukraine, an episode that strongly affected international food trade.
Cereals fall with harvest progress and expectation of greater supply
The cereal price index fell 3.5% in June, compared to May. According to FAO, wheat prices were pressured by the progress of the harvest and the prospects of ample supply in the Black Sea region, an important grain-producing and exporting area.
Corn also became cheaper in the international market. In this case, the drop was associated with the expectation of ample supply in South America and the decline in oil prices.
Rice rises with higher demand in Asia
Rice followed a different path from cereals in general. The FAO rice price index rose 3.2% in June, driven by higher demand in Asia for indica rice, a variety widely consumed in Asian countries.
Sugar sees a sharp drop, but weather still concerns producers
Sugar recorded one of the largest declines of the month, with a decrease of 5.7% in June, according to the FAO. The drop was influenced by the devaluation of ethanol in Brazil, which led mills to direct more sugarcane to sugar production.
The reduction, however, was limited by concerns about the possible impact of El Niño on the crops of India and Thailand, two major global producers of the commodity.
Dairy prices fall, while meats set new historical record
Dairy prices fell 1.5% in June, pressured by increased global supply. Meanwhile, the meat index rose 0.4% compared to the previous month and set a new historical record.
The rise in meat prices was mainly driven by poultry meat, due to strong global demand.
Vegetable oils rise again with demand for biodiesel
Vegetable oils also became more expensive in June. The index rose 3.8%, driven by higher prices for palm and rapeseed oil.
Part of this increase was associated with the rise in demand for biodiesel. Even so, the drop in sugar, cereals, and dairy was enough to keep the overall index down.
Global food market remains divided
The result for June shows a global food market still divided. Products like sugar, cereals, and dairy eased the overall index, while meats and vegetable oils remained pressured by high demand and market factors.
For exporting countries like Brazil, this scenario requires attention. Agricultural commodities remain among the main products traded by the country in the international market.
Do you think the drop in global food prices might reach Brazilian consumers in the coming months, or will the impact remain concentrated in international trade? Share your opinion!
