Thus, the prices of cereals in June fell by 2.1%. They are now 23.9% below last year’s record value. Fodder prices (used for animal feed) were the ones that fell the most, 3.4%. Corn prices fell for the fifth consecutive month: in Argentina and Brazil, the harvest is underway, and in the United States, crop forecasts improved after the rains. The start of the harvest in the countries of the northern hemisphere caused a decrease in wheat prices by 1.3%. “This is due to both the presence of significant stocks in the Russian Federation and the lowering of wheat export tariffs that occurred in June, as well as improving crop prospects in the United States,” FAO experts explain.
Vegetable oil prices fell another 2.4% during the month and reached their lowest level since November 2020. Such a prolonged fall is associated with a drop in the prices of palm and sunflower oil, while the prices of soybean and rapeseed oil increased. Palm oil prices are falling due to a seasonal increase in production in major producing countries, as well as persistently weak global import demand. World sunflower oil prices also continued to fall in the context of a significant supply volume. Soybean oil prices rose on fears of the consequences of a drought in the US Unfavorable weather in Canada and Europe, in turn, led to higher soybean oil prices.
The cost of dairy products decreased only 0.8%. But a year ago it cost 22.2% more. First of all, the decline in June is due to the fall in cheese prices against the background of a seasonal increase in production and a slight decrease in demand. At the same time, world butter prices increased, on the contrary, due to active demand.
Meat prices haven’t changed much. At the same time, there was an increase in poultry and pork prices, which was almost completely offset by a decrease in beef and lamb prices. Interestingly, the price of poultry meat increased in the context of bird flu outbreaks, with continued high demand. In turn, the increase in pork prices is associated with the continued limited supply in the main producing regions, mainly in the European Union. On the other hand, the prices of bovine and ovine meat decreased slightly due to the increase in supply.
Sugar prices, after four months of growth, fell by 3.2% in June. But now it is still 29.7% higher than the corresponding period last year. The drop in international sugar prices in June was mainly due to a good sugarcane harvest in Brazil and lower global import demand, especially from China, the world’s second largest sugar importer. However, fears about the possible impact of El Niño on the sugarcane crop, together with the strengthening of the Brazilian real, prevented international sugar prices from falling further.
