July 17, 2023

FAO Cereal Price fell 23.9% in June

The FAO Cereal Price Index averaged 126.6 points in June, down 2.7 points (2.1%) from May and as much as 39.7 points (23.9%) below its value a year ago.

The month-on-month decline reflects a fall in the global prices of all major cereals.

International coarse grain prices fell the most, down 3.4% since May. A fifth consecutive monthly decline in international maize prices was mostly driven by increased seasonal supplies from ongoing harvests in Argentina and Brazil.

Amidst concerns over drought conditions, some rain at the end of the month in key maize-producing areas of the United States also lessened the pressure on maize markets. Among other coarse grains, global prices of barley and sorghum also declined, influenced by spillover effects from maize and wheat markets.

International wheat prices declined by 1.3% in June, as harvests in Northern Hemisphere countries started. Ample supplies in Russia, where a wheat export tax decreased in June, continued to weigh on prices, while improved crop conditions in the US contributed to the downward pressure on prices.

International rice prices declined by 1.2% in June, amid subdued demand for non-Indica rice and efforts to attract export sales in Pakistan.

- FAO