Benchmark food commodity prices eased slightly in May, marking the first monthly decline after three consecutive months of increases, according to the latest Food and Agriculture Organisation (FAO) data.
The FAO Food Price Index, which tracks monthly changes in international prices of a basket of globally traded food commodities, averaged 130.8 points during the month.
This represented a 0.2 per cent decline from April’s revised level, but a 2.9 per cent increase compared to the same period last year.
Despite the small downward correction for the April data, the index remained near its highest level since January 2023 and 18.4 per cent below its March 2022 peak, underscoring continued pressure in global food markets.
According to FAO, overall stability in May was driven by offsetting movements across key food categories, with declines in vegetable oils balancing increases in cereals and sugar.
“While global food commodity markets have remained broadly resilient, rising cereal prices underscore vulnerability to weather-related risks and disruptions in energy and input markets,” reads the report.
“Continued uncertainty affecting key trade routes, including the Strait of Hormuz, could reduce fertiliser use and place additional pressure on food prices, highlighting the need for coordinated international action.”
Notably, the FAO Cereal Price Index rose by 2.6 per cent month-on-month and was nearly 5.0 per cent higher than a year earlier, driven by higher prices across major cereals.
Wheat prices increased by 3.4 per cent on the month, supported by expectations of smaller harvests in key exporting countries, including the United States, where winter wheat conditions remain among the weakest in decades.
Maize prices also climbed 1.9 per cent due to stronger import demand, tighter supply conditions in Brazil and the United States, and higher energy prices supporting ethanol-related demand.
Rice prices rose as weather concerns and higher crude oil costs affected leading Asian exporters.
By contrast, the FAO Vegetable Oil Price Index fell by 4.6 per cent in May, its first monthly decline this year.
The drop was driven by weaker palm oil prices amid subdued global demand and uncertainty in crude oil markets, while soyoil trends were mixed due to contrasting supply and biofuel demand dynamics.
The FAO Sugar Price Index surged by 7.5 per cent, reflecting concerns over lower sugar output in Brazil and potential production risks in Asia linked to adverse weather conditions.
Dairy and meat prices remained largely stable with only marginal movements across categories.
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