World Food Prices Rise 3rd Straight Month

The United Nations world food price index rose for a third consecutive month in May, as higher cereals and dairy product prices outweighed drops in prices for sugar and vegetable oils.

The U.N. Food and Agriculture Organization’s price index, which tracks the most globally traded food commodities, averaged 120.4 points in May, up 0.9% from its revised April level, the FAO said on Friday.

The May reading was nonetheless 3.4% below the level seen a year earlier.

The FAO index hit a three-year low in February as food prices continued to ease off from a record peak set in March 2022, following Russia’s invasion of fellow crop export major Ukraine.

The uptick in May was supported by cereal prices rising 6.3% month-on-month amid growing concerns about unfavorable crop conditions curbing 2024 harvests in key producing areas like northern America, Europe and the Black Sea region.

Dairy prices increased 1.8% in May from April, the FAO said, underpinned by increased product demand ahead of the summer holidays amid worries that milk production in western Europe may fall.

The FAO’s May sugar index fell sharply, decreasing 7.5% on a monthly basis, as a good start to the new harvest in top producer Brazil got underway. Vegetable oil prices declined 2.4% for the month, as palm oil quotations fell amid rising seasonal output. (Newsmax)