World food prices dip in May led by cereals, vegetable oils

Global food commodity prices declined in May, driven by marked drops in cereal, sugar, and vegetable oil prices, the UN Food and Agriculture Organization (FAO) said.

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The FAO Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 127.7 points in May, reflecting a 0.8% decrease from the April figure.

The May reading was up 6% from a year earlier but over 20% below a March 2022 peak following Russia’s full-scale invasion of Ukraine that started a devastating war between two of the world’s leading grains producers.

The FAO cereal price index fell 1.8% month on month, led by a sharp drop in global maize prices. Strong harvests and ample supplies in Argentina and Brazil, along with expectations of a record crop in the US, weighed on prices.