The Food and Agriculture Organisation of the United Nations (FAO) Food Price Index, a benchmark for world food commodity prices, averaged 128.0 points in June 2025, up 0.5% from May.
Although international prices of cereals and sugar fell, these declines were outweighed by higher prices for dairy products, meat and vegetable oils.
The index, which tracks monthly changes in the international prices of a set of globally traded food commodities, was, in June 2025, 5.8% higher compared to its level a year earlier but remained well below its peak in March 2022.
Cereal prices and oil index
The FAO Cereal Price Index fell by 1.5% in June from the previous month. World maize prices declined sharply for the second month amid abundant supplies from Argentina and Brazil.
Prices of sorghum and barley also decreased. Wheat prices, by contrast, increased due to weather-related concerns in parts of the European Union (EU), the Russian Federation and the United States of America (US).
International rice prices dipped slightly, primarily for Indica varieties, reflecting softer demand.
The FAO Vegetable Oil Price Index rose by 2.3% from May, led by gains in palm, soy and rapeseed oils.
International palm oil prices climbed nearly 5% on strong global demand. Soy oil prices also rose in June driven by expectations of higher biofuel demand in Brazil and the US, as well as higher soybean prices in South America amid firm international demand.
Rapeseed oil prices also rose amid tight global supply outlooks, while sunflower oil prices eased on improved production prospects in the Black Sea region.
Meat and dairy
The FAO Meat Price Index increased by 2.1% in June, reaching a new all-time high. World prices of bovine, pig and ovine meats all rose, while poultry meat prices continued to fall.
The FAO Dairy Price Index rose by 0.5% in June compared to the previous month, with butter prices reaching a new record high amid tight supplies in Oceania and the EU, coupled with continued strong demand from Asia.
Cheese prices increased for the third consecutive month, while the prices of skim and whole milk powders declined due to subdued global demand and ample supplies.
The FAO Sugar Price Index was down 5.2% from May, marking its fourth consecutive monthly decline and reaching its lowest level since April 2021.
The decrease reflects improved production outlooks in Brazil, India and Thailand, where favourable weather and expanded plantings should result in higher outputs.
Global cereal production projection
FAO also released a new Cereal Supply and Demand Brief, with new insights on crop prospects in 2025/2026.
FAO’s latest forecast foresees global cereal production in 2025 to reach an all-time high of 2.9 billion tonnes, up 0.5% from last month and 2.3% above the 2024 level.
The upward revision is driven by improved outlooks for wheat, maize and rice. However, forecasts for hot and dry weather in parts of key producing regions may impact yield potential, particularly for maize.
Wheat output is now forecast at 805.3 million tonnes, boosted by higher-than-expected yields in India and Pakistan.
Global maize production is also forecast to increase, driven by favourable conditions in Brazil and a larger-than-anticipated planted area in India, offsetting reductions in Ukraine and the EU due to dry weather and reduced planted areas.
Global rice production in 2025/2026 is anticipated to reach a record level of 555.6 million tonnes (milled basis), buoyed by improved prospects in India, Bangladesh, Pakistan and Vietnam, and despite expected declines in Iraq and the US.
Global cereal utilisation in 2025/2026 is forecast at 2.9 billion tonnes, up 0.8% from 2024/2025. Utilisation of coarse grains has been revised upward, while the forecasts for wheat use has been slightly lowered.
Rice consumption is expected to increase further, spurred by rising food demand and sustained ethanol production in India.
World cereal stocks at the end of the 2025/2026 season are forecast to reach 889.1 million tonnes, representing a 2.2% rise from their opening levels.
The global cereal stocks-to-use ratio is now expected to rise to 30.3%, suggesting a relatively comfortable supply outlook.
Global trade in cereals in 2025/2026 is predicted to reach 486.9 million tonnes, up 1.2% from 2024/2025.
Exports of both wheat and rice are forecast to increase, with rice trade reaching an all-time high of 60.8 million tonnes.
Maize trade is forecast to decline slightly, while trade in barley and sorghum will likely rise.
