World food commodity prices were little changed in August compared to a month earlier but remained at two-year highs.
The Food and Agriculture Organization of the United Nations reported Friday that its food price index - which tracks monthly changes in globally traded food commodities - averaged 130.1 points in August. That is virtually unchanged from July’s 130.0 points and almost 7% higher than a year earlier (see graph below). Declines in cereals and dairy were offset by gains in vegetable oils, meat, and sugar, the FAO said.
The FAO’s cereal price index fell by 0.8 % in August, reflecting strong global supply and uneven demand. International wheat prices declined on the back of larger harvests in the European Union and Russia, while subdued import demand from Asia and North Africa added further downward pressure. In contrast, international corn prices climbed for a third straight month, supported by robust US feed and ethanol demand and weather-related concerns in Europe. Rice trended lower amid intense competition among exporters.
Vegetable oil prices rose by 1.4%, reaching their highest level in more than three years. Palm oil led the increase, buoyed by strong global import demand and Indonesia’s plan to raise its biodiesel blending mandate in 2026. Sunflower and rapeseed oil prices also firmed, reflecting tighter supplies in the Black Sea region and Europe, respectively. On the other hand, soyoil prices slipped slightly as markets factored in ample global soybean supplies expected in the upcoming 2025/26 season.
Meat prices continued their upward trend, rising 0.6% to a new record. Beef led the gains, supported by strong demand in the US and China, which boosted export values for Australian and Brazilian suppliers. Sheep meat prices also strengthened, while pork held steady, and poultry fell due to abundant Brazilian exports.
Dairy prices slipped 1.3%, with butter, cheese, and whole milk powder weaker on muted Asian demand. Sugar prices inched up 0.2%, ending five months of declines.
The overall food price index remains almost 19% below its all-time high reached in March 2022, following the Russian invasion of Ukraine.
