The FAO global food price index continued to increase in May

The FAO food price index, which tracks month-to-month international price changes for the world’s most important food commodities, has risen by 0.9% since April, although it is still 3.4% below a year ago and 24.9% below from its record value two years ago.

The cereal price index rose 6.3% in May on higher global wheat exports, reflecting growing concerns about possible low output in 2024 due to unfavorable production conditions in the main growing regions (North America, Europe and the Black Sea region). The foreign trade price of corn has also strengthened since April due to concerns about Argentinean production threatened by the spiroplasma pest and the weather in Brazil, as well as the spillover of negative processes on the wheat market. The sub-index covering all rice varieties rose by 1.3% in May.

The FAO dairy price index has strengthened by 1.8% since April, which was driven by increasing demand from trade and the food processing industry, as well as concerns about a possible fall in milk production in Western Europe. The increased import demand for immediate purchases in some countries of the Middle East and North Africa also played a role.