The UN Food and Agriculture Organization’s broad measure of global food commodity prices was unchanged in June, although vegetable oil prices rose 3.1%, driven in part by strong biofuel demand.

The FAO Food Price Index averaged 120.6 points in June, 2.1% below its level a year before and 24.8% below the peak reached in March 2022 following Russia’s invasion of Ukraine.

The index for grains fell 3% in June – helping offset the increase in the cost of vegetable oils – due to higher production estimates for corn, wheat and rice.

In a separate report Friday, FAO projected that global grain production would reach a record 2.85 billion metric tons, a 0.5% increase from 2023, driven by improved prospects for corn production in Argentina and Brazil as well as Turkey and Ukraine.

The vegetable oil index is at its highest level since March 2023. 

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FAO’s index for meat prices was flat in June, while the dairy index rose by 1.2%, driven by surging butter prices that are at a two-year high.

FAO said small price increases for beef, pork and lamb “nearly offset a supply-led decline in international poultry meat prices.”

FAO’s gauge of sugar prices fell 1.9% in June.

The overall food price index is the average of the five commodity groups weighted by their share of exports.