On August 8th the United Nations Food and Agricultural Organization released the Food Price Index for Commodities covering July 2025. The sequential monthly increase in specific food price categories continues in 2025. The FAO recorded a 2.1 point increase in the Index from June 2025 to the most recent value of 130.1 points.
Components of the Index included:-
- The Meat index was up 1.5 points from June to 127.3 points with higher prices for all animal proteins representing an all-time high. Brazil regained WOAH status as HPAI-free and resumed exports in June. Prices for beef and chicken were higher than in June due to increased demand. From China and the U.S. Beef supply in the U.S. is constrained by past droughts and intermittent closure of the border with Mexico following outbreaks of New-World Screwworm myiasis. Pork was lower in price on increased availability.
- The Cereal Index in July was down 0.8 points from June to 106.5 despite higher corn and barley prices that were offset by lower values for wheat, sorghum and rice
- The Vegetable Oil Index in July was up 11.1 points from June to 166.8 points, a three-year high. with higher prices for soy, sunflower and palm oils. This was due to increased world demand for human consumption and for biodiesel.
- The Dairy Index was down 0.2 points from June to 155.3
Given the fluid state of tariffs, U.S. exports of corn and soybeans will be constrained during the current market year notwithstanding USDA projections. Traditional importers of U.S. agricultural commodities will be evaluating competitive prices from Argentine and Brazil offering greater availability and lower landed costs compared to the U.S. This will be to the advantage of domestic poultry and hog producers.