Food prices around the world fell slightly in June over a month, under the effect of the decline in cereals, dairy products and sugar, the FAO said on Friday, which however warned of “increasing risks” linked to El Niño.
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The FAO food price index, which tracks the evolution of prices for a range of foodstuffs, fell in June by 0.3% over one month. But it increased by 2.2% year-on-year, in particular due to disruptions linked to the war in the Middle East, in particular the rise in the cost of energy.
Over one month, the price of cereals and sugar fell, but that of vegetable oils and meat, on the contrary, increased.
“Commodity markets react differently,” notes Boubaker Ben-Belhassen, director of FAO’s Markets and Trade division. “In an increasingly uncertain environment, market transparency, timely information and predictability of global trade are essential to food security.”
In June, the cereal price index fell by 3.5%, under the influence of world prices for wheat, in full harvest, and corn marked by an abundance of South American production.
That of sugar fell by 5.7%, due to the decline in ethanol in Brazil, but this decline remains contained by fears of an impact of the El Niño climatic phenomenon on production in India and Thailand.
Conversely, the price of vegetable oils increased by 3.8%, especially palm and rapeseed oils, driven by demand for biofuels. Meat, at +0.5%, reached a record, driven by poultry.
This year, the FAO predicts significant harvests, although with El Niño uncertainty.
According to the UN organization, cereal production in 2026 is expected to be the second highest ever, at 2,983 million tonnes (1.9% below the 2025 record).
Wheat is expected to decline, to just over 800 million tonnes, with El Niño particularly affecting the Australian harvest. Rice production is expected to be 1.8% below last year’s record.
Some 41 countries, including 31 located in Africa, today need external aid to feed their populations, due to conflicts or climate shocks, indicates another FAO report on Friday.
