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 Organization of the United Nations (FAO) reported on Friday. 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, down 0.8 percent from April but remained 6.0 percent higher than a year earlier.
The FAO Cereal Price Index declined in May, down 1.8 percent from April and 8.2 percent below its May 2024 level.
The FAO Vegetable Oil Price Index dropped by 3.7 percent from April, with quotations down for all major oils. International palm oil prices declined markedly primarily due to seasonal output and availability increases in Southeast Asia.
The FAO Sugar Price Index decreased by 2.6 percent in May amid concerns over the uncertain world economic outlook, possible weaker demand from the beverage and food processing industries, and expectations of a recovery in global production next season.
The FAO Dairy Price Index rose by 0.8 percent in May, with strong demand from Asia keeping international butter prices at historic highs and spurring higher prices for cheese and whole milk powder.