Global food prices rise for third consecutive month, reports FAO

Global food commodity prices rose for the third consecutive month in May, as higher prices for cereals and dairy products outweighed falls in the prices of sugar and vegetable oils, the Food and Agriculture Organization of the United Nations (FAO) said. .

The FAO Food Price Index, which monitors monthly changes in international prices for a range of globally traded food commodities, averaged 120,4 points in May, an increase of 0,9% over the revised level of April. Despite the recent rise, the index is still 3,4% below the level recorded a year ago and 24,9% below the March 2022 peak.

The FAO Cereal Price Index rose 6,3% from April, driven by rising global wheat export prices. This increase reflects growing concerns about unfavorable harvest conditions, which could reduce 2024 crop yields in key producing areas, including parts of North America, Europe and the Black Sea region.

Corn export prices also increased in May due to production concerns in Argentina, caused by corn red stunt disease, and in Brazil, due to unfavorable weather. Additionally, fallout from wheat markets and limited sales activity in Ukraine contributed to this rally. The FAO Rice Price Index rose 1,3% in May.

On the other hand, the FAO Sugar Price Index fell 7,5% compared to April, mainly due to pressure from the good start of the new harvest in Brazil. Lower international crude oil prices have also put downward pressure on sugar prices by reducing demand.

The FAO Vegetable Oil Price Index fell 2,4% compared to April. Lower palm oil prices, due to increased seasonal production and continued weak global demand, more than offset higher soybean oil prices, driven by growing demand from the biofuels sector, and firmer oil prices. rapeseed and sunflower oils, mainly due to decreased export availability in the Black Sea region.