The FAO Food Price Index, a benchmark for world food commodity prices, averaged 130.1 points in July 2025, up 1.6 percent from June, driven primarily by rising international prices of meat and vegetable oils. Despite this monthly increase, the index remains 18.8 percent below its peak in March 2022, although 7.6 percent higher than its level in July 2024.
The index tracks monthly changes in the international prices of a set of globally traded food commodities. In July, price increases in the meat and vegetable oil indices more than offset declines in the cereal, dairy and sugar indices.
WHEAT AND SORGHUM UNDER PRESSURE
The FAO Cereal Price Index averaged 106.5 points in July, down 0.8 points (0.8 percent) from June and 4.2 points (3.8 percent) from July 2024. Global export prices of barley and maize rose, while those of sorghum and wheat declined. Abundant seasonal supplies from ongoing winter wheat harvests in the northern hemisphere placed downward pressure on prices; however, below average conditions for spring wheat in parts of northern America, coupled with reluctant farmer selling in Europe and the Black Sea region, provided some support. Slow farmer selling interest also weighed on international maize prices, as did dry conditions in Eastern Europe and parts of Ukraine and reduced export availabilities from Argentina and Brazil, due to export taxes and stronger domestic demand, respectively. Meanwhile, the FAO All Rice Price Index fell by 1.8 percent in July 2025, as ample exportable supplies and lacklustre import demand continued to weigh on prices.
VEGETABLE OILS REACH HIGHEST LEVEL IN THREE YEARS
The FAO Vegetable Oil Price Index averaged 166.8 points in July, marking a sharp rise of 7.1 percent from the previous month, reaching a three-year high. The increase reflected higher quotations for palm, soy and sunflower oils. Palm oil prices rose on robust global demand and improved competitiveness, while soy oil was supported by expectations of firm biofuel sector demand in the Americas. Sunflower oil prices also climbed due to tightening export supplies in the Black Sea region. In contrast, rapeseed oil prices declined with the arrival of new crop supplies in Europe.
MEAT PRICES HIT ALL-TIME HIGH
The FAO Meat Price Index averaged 127.3 points, up 1.2 percent from June, reaching a new all-time high. The increase was led by higher prices for bovine and ovine meat, supported by strong import demand, particularly from China and the United States of America. Poultry meat prices also edged up slightly amid resumed imports from key partners following Brazil’s regaining of its avian influenza-free status. Conversely, pig meat prices declined due to ample supplies and reduced global demand, especially in the European Union.
DAIRY PRICES RECORD FIRST DECLINE IN 15 MONTHS
The FAO Dairy Price Index edged down by 0.1 percent from June to 155.3 points, marking the first decline since April 2024. Prices for butter and milk powders decreased, reflecting abundant export supplies and subdued import demand, particularly from Asia. However, international cheese prices continued to rise, driven by strong demand in Asian and Near East markets and tighter export availability in the European Union.
The FAO Sugar Price Index averaged 103.3 points, down 0.2 percent from the previous month, continuing its downward trend for a fifth consecutive month. Expectations of a global production recovery in 2025/26, notably in Brazil, India, and Thailand, weighed on prices, although signs of a rebound in global sugar import moderated the decline.
