Global Food Prices Decreased in June

The Global Food Price Index compiled by the Food and Agriculture Organization (FAO) of the United Nations fell by 2.3% in June. This index has been declining for the third consecutive month, yet remains 23% higher than in the same month of 2021.

Specifically, the grain price index decreased by 4.1% in June; however, it is still notably higher (by 36%) compared to a year ago. Among these, wheat prices remain nearly one and a half times (48.5%) higher. The decrease in prices is attributed to the promising harvest prospects for wheat in Canada and Russia, as well as maize collection in Brazil, Argentina, and the USA.

At the same time, rice prices have risen due to high demand and limited volumes of basmati rice.

The index for oils saw a 7.6% reduction in June, owing to price decreases in all major types—palm, sunflower, and soybean oils. Notably, an increase in production and exports of palm oil is expected, including in Indonesia, one of the largest producing countries. Sunflower oil prices are declining as demand has decreased in response to excessively high prices.

Sugar prices dropped by 2.6% compared to May, marking the lowest level since February. Specifically, the increase in sugar production and exports from Brazil has been supported by the depreciation of the real against the dollar, alongside declines in ethanol prices (part of which uses sugarcane). The price decrease has been moderate since the outlook for this year's sugarcane harvest remains unclear.