Global: FAO cereal price index drops in June

The FAO cereal price index experienced a decrease of 3.0% in June, reaching an average of 115.2 points, which is 9.0% lower than the baseline value of June 2023. This decline was observed across all major cereals, including wheat, corn, barley, sorghum, and rice, due to various factors. Wheat prices dropped as harvests progressed in northern hemisphere countries like Kazakhstan and Ukraine, with Turkey's temporary import ban also playing a role. Corn prices fell due to anticipated higher production in Argentina, Brazil, and the United States, attributed to progressed harvests and unexpected increase in planting areas. While rice prices saw a slight decrease, the overall market activity remained weak.

The FAO cereal price index reached an average of 115.2 points in June, 3.5 points (3.0%) less than in May and 11.4 points (9.0%) below its baseline value. June 2023. Compared to the previous month, world export prices for all major cereals recorded a decline. The decline in wheat prices was mainly due to seasonal pressure from the ongoing harvests in the northern hemisphere. A slight improvement in production prospects in some major exporting countries such as Kazakhstan and Ukraine, along with Turkey's application of a temporary import ban, also contributed to the more moderate tone in prices. Corn export prices also fell in June as harvests progressed in Argentina and Brazil, where production is now expected to be higher than previously forecast. Furthermore, the decline in prices was also caused by the fact that the area planted with corn in the United States was larger than ...