Rome: The benchmark of world food commodity prices dropped in May, as marked declines in international quotations for maize and palm oil outweighed historically high prices for butter and bovine meat, the Food and Agriculture Organisation of the United Nations (FAO) reported on Friday.
According to Emirates News Agency, the FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally traded food commodities, averaged 127.7 points in May. This represents a 0.85% decrease from April, although it remains 6.0% higher than the same period last year.
The FAO Cereal Price Index saw a decline of 1.8% from April and was 8.2% below its May 2024 level. This was primarily due to a sharp drop in global maize prices, driven by strong harvests and robust availability in Argentina and Brazil, as well as expectations of a record crop in the United States. World wheat prices experienced a slight decrease due to improved crop conditions in the northern hemisphere. However, the FAO All-Rice Price Index increased by 1.4%, influenced by firm demand for fragrant varieties, higher prices for Indica rice, and currency fluctuations.
In the vegetable oil sector, the FAO Vegetable Oil Price Index fell by 3.7% from April. This was due to decreases in quotations for all major oils. International palm oil prices dropped significantly due to seasonal output and availability increases in Southeast Asia. Meanwhile, global soy oil prices were impacted by higher supplies in South America and subdued demand for biofuel feedstock. Rapeseed oil prices eased due to improved supply prospects in the European Union, and sunflower oil prices fell because of weakening global import demand and reduced price competitiveness.
The FAO Sugar Price Index decreased by 2.6% in May amid concerns over the uncertain world economic outlook, potential weaker demand from the beverage and food processing industries, and expectations of a recovery in global production next season.
The FAO Meat Price Index increased by 1.3% from its revised April level, as higher quotations for ovine, pig, and bovine meats pushed the latter to a new historic high. In contrast, poultry meat prices declined, influenced by lower quotations in Brazil, where the detection of high-pathogenicity avian influenza on a commercial farm in mid-May led to import bans by several major importing countries, resulting in surplus supplies.
The FAO Dairy Price Index rose by 0.8% in May. Strong demand from Asia maintained international butter prices at historic highs and drove higher prices for cheese and whole milk powder.
