According to the United Nations Food and Agriculture Organisation (FAO), the index of international food commodity prices declined in May, with drops in quotations for various cereals, vegetable oils, and dairy products.
The FAO's Food Price Index (FPI) monitors monthly changes in international prices of commonly traded food commodities, which has been averaged 124.3 points in May, declining 2.6 percent from April and 22.1 percent below the significant high reached in March 2022.
FAO's Cereal Price Index decreased 4.8 percent from April, with world maise quotations leading by a 9.8 percent drop due to a positive production outlook and a slow import demand.
Wheat prices have also declined by 3.5 percent due to the Black Sea Grain Initiative and the continuous availability of supplies.
Comparatively, the price of rice has continued its upward trajectory due to purchasing power in Asia and tight supplies in export countries such as Vietnam and Pakistan.
Vegetable oil declined by 8.7 percent in May, averaging 48.2 percent below its price index from the year prior.
Furthermore, palm oil prices significantly decreased globally in April due to weakened global import purchasing and rising outputs in central-producing counties. Soy oil prices also declined for the sixth consecutive month in the middle of crop growth in Brazil and greater stocks in the United States of America than expected.
Rapeseed and Sunflower oil prices declined, with comfortable global supplies available.
The international Dairy Price Index decreased from 3.2 percent in April, with international cheese prices leading the pack with a steep drop due to the high export availability and significant quantities of seasonal milk production in the northern hemisphere. Milk powder and butter, in contrast, have experienced a rebound.
Experiencing its fourth consecutive month of increases, the FAO's international Sugar Price Index went up by 5.5 percent from April, marking close to a 31 percent increase from the year prior. This continued increase reflects the restricted global availability of the commodity and growing concerns about the impact of the El Niño phenomenon on next season's crops. Also impacting the price were shipping delays and strengthened competition from soybean and maise in Brazil.
However, Brazil's positive for 2023 sugarcane crops prevented more significant monthly price increases, as did lower international crude oil prices.
Also rising in May was the FAO's Meat Price Index, which increased by one percent, the most significant aspect driving the increase being the Asian market import demand for poultry meat and the ongoing restricted access for bovine meat in the United States of America.
