FAO: World food prices fall

The global food price index fell in May, thanks to the decrease in the quotations of cereals, sugar and vegetable oils, the United Nations Food and Agriculture Organization (FAO) announced on Friday, Reuters reports, according to Agerpres.

The FAO publishes its own Food Price Index monthly, which measures the changes in prices recorded for a basket of foods consisting of: cereals, vegetable oils, dairy products, meat and sugar. In May 2025, this index stood at an average of 127.7 points, down 0.8% compared to the level recorded in April. Although it fell month-on-month, the index remains 6% higher than in May 2024, but more than 20% below the all-time high reached in March 2022.

The decline in May was primarily due to a 3.7% decline in vegetable oil prices compared to April. Palm oil prices fell due to seasonal factors in Southeast Asia. Soybean oil prices declined due to higher supplies from South America and weak demand for biofuels. Rapeseed oil prices fell on improving supply prospects in the European Union, while sunflower oil prices declined due to slowing global demand.

Sugar prices fell 2.6% from April, amid concerns about the global economic outlook, weaker demand from the food and beverage industry, and expectations of a rebound in global production next season.

Cereal prices also fell 1.8% month-on-month as global corn prices eased significantly. Strong corn harvests and large supplies in Argentina and Brazil, coupled with expectations of a record corn crop in the United States, put pressure on prices.

On the other hand, global meat prices rose 1.3% in May, as beef, pork and sheepmeat prices rose. Poultry prices fell, weighed down by lower prices in Brazil after several countries imposed import restrictions following the discovery of avian influenza in Brazil.

Dairy prices rose 0.8% month-on-month, supported by strong demand in Asia. Butter prices remained at record highs, while cheese and powdered milk prices also rose.

In a separate report, the FAO revised its estimate for world cereal production in 2025 to 2.911 billion tonnes, from 2.848 billion tonnes previously. With production expected to outpace consumption, global cereal stocks are expected to rise by 1%, partially recovering from last year's contraction.