The FAO Food Price Index fell for a second month to 130.3 in June 2026 from 130.8 in May. Cereals cost decreased 3.5%, with wheat dropping 4.4%, as rapid harvest progress and strong supply prospects in the Black Sea region outweighed concerns over crop prospects in the US and Australia. Sugar also sank 5.7% as lower domestic ethanol prices in Brazil encouraged greater allocation of sugarcane to sugar production although persistent concerns over the potential impact of El Niño on sugar production in key producing countries, including India and Thailand, during the upcoming 2026/27 season, contained the overall decline in sugar prices. In addition, dairy fell 1.5% to 2023-lows, as prices softened across all dairy products. In contrast, meat prices edged up 0.4% to reach a fresh record high, primarily driven by higher poultry meat prices. Vegetable oils went up 3.8%, reflecting the combined effect of higher palm and rapeseed oil quotations and broadly stable sunflower oil prices.

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