According to the FAO’s June report, vegetable oils led the global trend of rising food prices last month. On average, the FAO price index for this commodity group rose by 3.8% in June compared to the previous month. This increase was driven by higher exchange prices for palm and rapeseed oils, as well as generally stable high prices for sunflower oil—which more than offset the slight decline in soybean oil prices.
On the other hand, sugar prices on the global market fell more in June than those of any other food group monitored by the FAO. Thus, the FAO sugar price index in June was 5.7% lower than in May. In June, domestic ethanol prices in Brazil continued to decline for the third consecutive month, which stimulated increased use of sugarcane for sugar production and contributed to a decline in global prices for this product. Active sugar exports from Brazil exerted additional downward pressure on prices, a trend facilitated by the weakening of the Brazilian real against the U.S. dollar.
However, according to FAO experts, a further decline in global sugar prices will be tempered by lingering concerns about the potential impact of El Niño on sugar production in key producing countries, including India and Thailand, in the upcoming 2026–2027 season.
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