The world food commodity price index rose for the third consecutive month in May, as increases in prices for cereals and dairy products outpaced price declines for sugar and vegetable oils, according to the Food and Agriculture Organization of the United Nations (FAO).
The FAO food price indexwhich tracks monthly changes in international prices of a range of globally traded food commodities, averaged 120.4 points in May, up 0.9% from April’s level revised, while it remained down 3.4% from its year-ago level and 24.9% below its March 2022 peak.
The FAO Cereal Price Index increased by 6.3% compared to Aprilfueled by rising global grain export prices, reflecting growing concerns about unfavorable crop conditions holding back yields for 2024 crops in major producing areas, including parts of North America, Europe and the Black Sea region Corn export prices also increased in May, driven by rising production concerns in both Argentina, due to Spiroplasma disease (also known as corn stunt), and Brazil, due to unfavorable weather conditions. , as well as spillover effects from grain markets and limited sales activity in Ukraine. The FAO multirice price index increased by 1.3% in May.
The FAO dairy price index increased by 1.8 percent compared to April, supported by increased demand from the retail and food service sectors ahead of the summer holidays and market expectations that milk production in Western Europe may fall below historical levels. Renewed demand for imported supplies from some countries in the Near East and North Africa has also increased dairy prices.
The FAO Sugar Price Index, meanwhile, fell 7.5 percent compared to April, driven mainly by the good pressure of the good start of the new harvest season in Brazil. International crude oil prices have also put downward pressure on sugar prices, lowering demand.
The FAO Vegetable Oil Price Index fell 2.4 percent compared to April. Lower palm oil prices due to seasonal production increases and ongoing weak global demand more than offset higher soybean oil prices due to growing demand from the biofuel sector and lower prices. solids of rapeseed and sunflower oils mainly due to the decrease in export availability in the Black Sea region.
The FAO Meat Price Index decreased marginally, by 0.2 percentas international prices of poultry and beef have decreased while those of pork and sheep have increased.
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