Global food commodity prices rebound in June

In June, the FAO Food Price Index saw its first increase this year, with prices rising in vegetable oils, sugar, and dairy, while cereals and meat prices remained down due to COVID-19 market uncertainties. The FAO Vegetable Oil Price Index surged by 11.3% due to increased global import demand and concerns about production. The FAO Sugar Price Index also rose by 10.6% because of higher crude oil prices, leading sugar mills to prioritize ethanol production. The FAO Dairy Price Index increased by 4.0% as import demand grew, especially in the Middle East and East Asia. However, the FAO Cereal Price Index fell by 0.6% due to new harvests and improved production prospects, while the FAO Meat Price Index decreased by 0.6%, with the exception of pig meat in Europe, as export availabilities increased. Record global cereal production is expected, reaching 2,790 million tonnes in 2020, with worldwide cereal stocks predicted to grow by 6.0% in 2021. Despite these supply increases, the report also highlights the need for food assistance due to the pandemic's impact on incomes, with 44 countries requiring external assistance.