On July 5th the United Nations Food and Agricultural Organization released the Index of Food Commodities for June 2024. A sequential 12-month reduction in food prices is evidenced by the 2.5 point decrease in the Index from June 2023 to the most recent value of 120.6, unchanged from May.
Components of the Index included:-
- The Cereal Index was down 3.5 points from May to 115.2 points due to lower corn and wheat prices.
- The Vegetable Oil Index in June was up 4.0 points from May to 131.8 points with higher prices for soy, sunflower and palm oils on increased demand and U.S. diversion of soybean oil to biodiesel.
- The Dairy Index was up 1.3 points from May to 127.8 in June and up from 116.9 points in May 2023 on increased demand.
- The Meat index was up 1.5 points from May to 112.4 points with higher poultry and beef prices but offset by decreases for chicken on adequate supply.
Boutiful crops in Brazil and Argentina with restoration of Black Sea shipping using the ‘Humanitarian Corridor’ along the eastern seaaboard have collectively reduced concern over availability of grains and oilseeds and contributed to a moderation in prices for agronomic commodities.