World food prices are rising for the third month in a row. Increase in the price indices for cereals and dairy products is slightly more than offset decrease in those for sugar and vegetable oils. The website of the Food and Agriculture Organization (FAO) of the United Nations says.
According to FAO, prices of food products in May increased by 0.9 percent compared to prices in April. At the same time, prices for food products are 3.4 percent lower than in the same period last year.
Cereal prices
Cereal prices in May increased by 6.3 percent compared to April. Global export prices of all major cereals rose month-on-month, with wheat prices increasing the most. The sharp monthly rise was largely due to growing concerns about unfavourable crop conditions for the 2024 harvests, possibly constraining yields in some main producing areas of several major exporting countries, including in parts of Europe, Northern America and the Black Sea region. Maize export prices also increased in May, reflecting production concerns in both Argentina (due to crop damage from the spread of Spiroplasma disease) and Brazil (due to unfavourable weather), along with limited farmer selling activity in Ukraine amidst seasonally tightening supplies and a strong global demand. The FAO All Rice Price Index edged up by 1.3 percent in May.
Meat, dairy and sugar
The Dairy Price Index averaged 126.0 points in May, up 2.3 points (1.8 percent) from April, pushing the index value 4.3 points (3.5 percent) above its corresponding value a year ago. Increased demand from the retail and food services sectors ahead of the summer holidays and market expectations that milk production may fall below historical levels in Western Europe, coupled with seasonally softening milk production in Oceania, underpinned the increase in dairy price quotations in May. In addition, renewed import demand for spot supplies, especially from some countries in the Near East and Northern Africa, contributed to the increase in dairy prices.
The Sugar Price Index averaged 117.1 points in May, down 9.5 points (7.5 percent) from April. The drop in international sugar price quotations in May was mainly driven by the good start of the new harvest season in Brazil, which was bolstered by conducive weather conditions contributing to an improved global supply outlook. Larger export availabilities from Brazil and lower international crude oil prices exerted further downward pressure on sugar prices.
The Vegetable Oil Price Index averaged 127.8 points in May, down 3.1 points (2.4 percent) month-on-month, yet standing 7.7 percent above its year-earlier level.
The Meat Price Index averaged 116.6 points in May, down marginally (0.2 points or 0.2 percent) from April and standing 1.5 points (1.3 percent) below its corresponding value one year ago. International prices of poultry and bovine meats fell, while those of pig and ovine meats increased.
