FAO food price index fell in May

The benchmark international food commodity price index stood at 127.7 points in May, down 1 point (0.8 percent) from April, but still 7.2 points (6 percent) higher than last May.

The FAO food price index is a trade-weighted indicator that takes into account the international market prices of the five most important food commodities – vegetable oils, cereals, meat, dairy products and sugar.

The average of the index last year was 122 points, 2.1 percent lower than in 2023.

The FAO Cereal Price Index fell 2 points (1.8 percent) to 109, down 9.7 points (8.2 percent) from its May 2024 level. The decline was driven by falling maize prices due to tight competition in the market and increased seasonal availability due to ongoing harvests in Argentina and Brazil. Expectations of a record US maize crop this year also added to price pressures.

The Vegetable Oil Price Index fell 5.8 points (3.7 percent) to 152.2 in May, but is still 19.1 percent higher than a year earlier. Palm, rapeseed, soybean and sunflower oil prices in particular fell last month.

The sugar price index stood at 109.4 points in May, down 2.9 points (2.6 percent) from April, marking the third consecutive month of monthly declines.

The sugar price index in May was 7.7 points (6.6 percent) lower than its May 2024 level. The decline was driven by weaker global demand for sugar, driven by the uncertain global economic outlook.

The FAO Meat Price Index stood at 124.6 points in May, up 1.6 points (1.3 percent) from April and 7.9 points (6.8 percent) from a year earlier. The increase was driven by higher international prices for beef, sheep and pork, more than offsetting lower prices for poultry.