Global food prices dip in May on falling maize, vegetable oil costs: FAO
The FAO Food Price Index, which tracks monthly changes in international prices of a basket of key food commodities, averaged 127.7 points in May, a 0.8 percent drop from April
GLOBAL – World food commodity prices slipped in May, driven primarily by sharp declines in maize and palm oil prices, according to the latest data from the Food and Agriculture Organization of the United Nations (FAO).
The FAO Food Price Index, which tracks monthly changes in international prices of a basket of key food commodities, averaged 127.7 points in May. This represents a 0.8 percent drop from April, although the index remains 6 percent higher than it was in May 2024.
Of the five major commodity groups monitored by the FAO, prices for vegetable oils, cereals, and sugar all fell in May. In contrast, dairy and meat prices continued to rise, with the latter reaching new records.
Vegetable oil prices saw the largest decline, with the FAO Vegetable Oil Price Index dropping 3.7 percent from April.
All major oils recorded lower prices, with palm oil experiencing a particularly sharp decrease. The FAO attributed this to increased seasonal output and greater export availability in Southeast Asia. Soy oil prices also fell, pressured by higher supplies in South America and subdued demand for biofuel feedstock.
Meanwhile, rapeseed oil prices eased due to improved supply prospects in the European Union, and sunflower oil prices declined amid weakening global import demand.
Cereal prices also moved lower, with the FAO Cereal Price Index falling 1.8 percent from April and standing 8.2 percent below its level a year ago. Maize prices led the decline, thanks to robust harvests and strong availability in Argentina and Brazil, as well as expectations of a record crop in the United States.
Wheat prices slipped on the back of better crop conditions in the northern hemisphere. However, rice prices bucked the trend, rising 1.4 percent due to firm demand for fragrant varieties, higher prices for Indica rice, and currency fluctuations.
Sugar prices continued their downward trend, with the FAO Sugar Price Index dropping 2.6 percent in May. The agency cited concerns over the uncertain global economic outlook, weaker demand from the beverage and food processing industries, and expectations of a recovery in global sugar production next season.
In addition to its price report, the FAO released its latest Cereal Supply and Demand Brief, forecasting a record global cereal production of 2,911 million tonnes in 2025, a 2.1 percent increase from 2024.
Global cereal utilization is expected to rise to 2,898 million tonnes, with food consumption growing 0.9 percent and feed use increasing 0.5 percent.
With production expected to outpace utilization, world cereal stocks are forecast to grow by 1 percent to 873.6 million tonnes, partially recovering from last year’s decline.
The global cereal stock-to-use ratio is projected to remain stable at 29.8 percent. Global cereal trade is set to rebound by 1.9 percent to 487.1 million tonnes, driven by a 3.8 percent rise in wheat trade, even as rice trade is expected to fall by 0.7 percent.
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