More Stories

Informist, Friday, Aug. 8, 2025

MUMBAI – The UN Food and Agriculture Organization's Food Price Index rose 1.6% on month to 130.1 points in July as increases in the indices of meat and vegetable oils outweighed the decline in indices of cereals, dairy and sugar. The FAO Food Price Index was nearly 7.6% higher than a year ago but remained 18.8% below the peak it had touched in March 2022, the organisation said in a report.

The Vegetable Oil Price Index rose to a three-year high of 166.8 points in July, up 7.1% on month. The increase was driven by higher quotations for palm, soy and sunflower oils, which more than offset the decline in rapeseed oil prices, according to the report. Global palm oil prices rose for the second consecutive month in July, primarily due to persistent robust global import demand fuelled by improved price competitiveness compared to other vegetable oils.

Soy oil prices were supported by prospects of firm feedstock demand from the biofuel sector in the Americas, while sunflower oil prices rose due to seasonally tightening supplies in the Black Sea region. On the other hand, global rapeseed oil prices declined in July, mainly pressured by the arrival of new crop supplies in Europe, the organisation said.

The Cereal Price Index was at 106.5 points in July, down nearly 1% on month, and around 4% lower than a year ago. 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, the report said. 

However, below-average conditions for spring wheat in parts of North America, coupled with reluctant farmer selling in Europe and the Black Sea region, provided some support, it said. Lower selling interest by farmers also weighed on international maize prices. Meanwhile, the FAO All Rice Price Index fell by 1.8% in July as ample exportable supplies and lacklustre import demand continued to weigh on prices, it said. 

The Sugar Price Index averaged 103.3 points in July, down 0.2% on month, marking the fifth straight monthly decline and 13.5% lower on year. Early forecasts of a likely recovery in global sugar production in 2025-26, resulting from expectations of larger outputs in India and Thailand, coupled with favourable weather conditions in key southern growing regions in Brazil, exerted downward pressure on world sugar prices in July, the organisation said. However, signs of a rebound in global sugar import demand limited the overall decline, according to the report.  

The Meat Price Index averaged 127.3 points in July, up 1.2% on month, driven by higher bovine and ovine meat prices, along with a slight increase in poultry meat prices. On a yearly basis, the index was up 6.0%. Global bovine meat prices reached a new record high, supported by higher quotations in Australia, owing to strong import demand, particularly from China and the US, which outpaced available export supplies, the report said. 

The Dairy Price Index averaged 155.3 points in July, down 0.1% on month, but up 21.5% on year. The marginal decline – the first since April 2024 – was driven by lower international prices for butter and milk powders, which were largely offset by continued increases in cheese quotations. The butter price index fell by 1.1%, marking its first decline in six months, driven by weaker quotations from Oceania, where production rising inventories weighed on prices, the organisation said. However, firm butter prices in the European Union, due to strong demand for cream amid lower availability, it said.

The indices for whole and skim milk powders continued to decrease, reflecting ample export supplies from Oceania and subdued import demand, particularly from China and other key Asian markets. 

On the other hand, international cheese prices rose, supported by sustained demand from Asian and the Near East, which includes parts of North Africa and Southwest Asia and reduced export availability in the European Union. But the increase was partially capped by lower quotations in Oceania and the US.  End

Reported by Taniva Singha Roy

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.