Global food commodity prices rose for the second month in a row in July 2025, led by sharp gains in vegetable oil and meat, even as cereals, dairy, and sugar continued to soften, latest UN data shows.
According to Food and Agriculture Organization (FAO), Food Price Index, which tracks monthly changes in a basket of globally traded food commodities, averaged 130.1 points in July, up 1.6% from June. While prices are still nearly 19% lower than their March 2022 peak, they remain 7.6% higher compared to July last year.
The biggest jump came in vegetable oils, with the index soaring 7.1% to 166.8 points, a three-year high. Palm oil prices climbed on strong global demand and improved competitiveness, soy oil gained on robust biofuel demand in the Americas, and sunflower oil rose due to tightening Black Sea supplies. Rapeseed oil bucked the trend, falling on fresh crop arrivals in Europe.
Meat prices also hit fresh records, with the FAO Meat Price Index up 1.2% to 127.3 points. Bovine and ovine meat prices surged on strong import demand from China and the US, while poultry prices edged higher after Brazil regained avian influenza-free status, reviving exports. Pig meat prices, however, slipped on ample supply and weaker demand in the European Union.
Cereal prices dipped 0.8% to 106.5 points as lower wheat and sorghum prices offset gains in maize and barley. Seasonal wheat harvests in the northern hemisphere weighed on prices, though poor spring wheat yields in parts of North America provided limited support. Rice prices fell 1.8% amid abundant export supplies and sluggish import demand.
Dairy Price Index eased 0.1% to 155.3 points, ending a 14-month rising streak, as butter and milk powder prices fell on ample supplies and muted Asian demand. Cheese prices continued to climb on strong Asian and Near East demand and tight European availability.
Sugar prices extended their decline for a fifth straight month, slipping 0.2% to 103.3 points. Expectations of a production rebound in Brazil, India, and Thailand weighed on the market, though signs of recovering global import demand tempered the fall.
