In May, the FAO Food Price Index, which tracks global food commodity prices, experienced a decline, primarily due to significant drops in the prices of maize and palm oil. The index averaged 127.7 points, representing a 0.8 percent decrease from April, while still being 6.0 percent higher than the same month the previous year.
The FAO Cereal Price Index witnessed a decrease of 1.8 percent in May, reflecting an 8.2 percent drop compared to May 2024. A substantial decrease in global maize prices was observed, attributed to strong harvests and increased availability in Argentina and Brazil, along with expectations for a record crop in the United States.
Meanwhile, world wheat prices edged down as crop conditions improved in the northern hemisphere. Conversely, the FAO All-Rice Price Index rose by 1.4 percent, driven by robust demand for fragrant rice varieties and rising prices for Indica rice.
Additionally, the FAO Vegetable Oil Price Index fell by 3.7 percent, with all major oil prices declining. A notable drop in international palm oil prices was primarily due to seasonal increases in output within Southeast Asia.
Global soy oil prices were affected by higher supplies in South America and weaker demand for biofuel feedstocks. On the other hand, rapeseed oil prices eased due to improved supply prospects within the EU, while sunflower oil saw a decline linked to diminishing import demand.
The FAO Sugar Price Index also fell by 2.6 percent due to uncertainties surrounding the global economic outlook and expectations for increased global sugar production. Despite these declines, the FAO Meat Price Index rose by 1.3 percent, spurred by higher prices for ovine, pig, and bovine meats.
Poultry prices, however, dropped due to avian influenza outbreaks in Brazil. Looking ahead, the FAO projects a record global cereal production of 2,911 million tonnes for 2025, an increase of 2.1 percent from the previous year.
World cereal utilization is expected to grow alongside a rise in global food consumption, ensuring that cereal stocks will increase in the upcoming years. The FAO’s Food Outlook report, scheduled for release on June 12, will provide a comprehensive analysis of global cereal markets and related commodities.