Global food prices edge higher on weather, geopolitical pressures

Source: gpointstudio via Magnfic

The index, which tracks monthly changes in the international prices of a basket of globally traded food commodities, averaged 131.1 points in July, up 0.6% from June and 1.0% higher than a year earlier.

Cereal prices rebound

The creal price index rose 3.4% from June, reversing its previous monthly decline and standing 6.9% above its July 2025 level.

Global wheat prices increased by 5.8% amid concerns over continued disruptions to Black Sea export flows and the impact of recent heatwaves on crop yields in several major producing countries.

World maize prices rose 3.6%, supported by hot and dry weather in parts of the United States and stronger energy markets linked to heightened geopolitical tensions.

The all rice price index remained broadly unchanged during the month.

Vegetable oils and sugar climb

The vegetable oil price index increased by 2.0% in July, reaching its highest level since June 2022.

Palm oil prices strengthened on firm demand from Indonesia's biodiesel sector and higher crude oil prices, while soy oil prices rose on sustained demand in the United States and stronger global import demand. Sunflower and rapeseed oil prices declined.

The sugar price index climbed 5.6%, reversing June's decline, as persistent hot and dry weather raised concerns over crop yields in the European Union and El Niño-related weather conditions affected production prospects in key Asian producing countries.

Expectations of stronger ethanol demand in Brazil also supported prices, although improving harvesting conditions in the country's Centre-South growing region helped limit further gains.

Meat and dairy prices ease

The meat price index fell 2.8% from its record high in June, marking its first monthly decline this year.

Poultry prices declined on increased export supplies from Brazil, while pig meat prices weakened due to abundant supplies in the European Union and subdued global demand. Bovine meat prices also eased on weaker import demand from Asia, while ovine meat prices reached a new record high as export supplies from Oceania remained tight.

The dairy price index declined by 0.7% in July as prices for whole and skim milk powders and butter fell. Cheese prices, however, increased for the first time in a year as tighter seasonal milk supplies in the European Union outweighed continued price pressure from Oceania and the United States.