Commodities Buzz: FAO food price index up around 3% on year in May, Sugar prices at highest since October 2025
The FAO Food Price Index (FFPI) averaged 130.8 points in May 2026, down 0.2 points (0.2 percent) from its revised April level, remaining broadly stable. Increases in the price indices for cereals and sugar were offset by declines in vegetable oils and dairy products, while the index for meat products remained almost unchanged. Compared to historical levels, the FFPI in May stood 3.7 points (2.9 percent) higher than a year ago but remained as much as 29.4 points (18.4 percent) below its peak reached in March 2022.
The FAO Cereal Price Index averaged 114.3 points in May, up 2.9 points (2.6 percent) from April and 5.3 points (4.9 percent) from its level a year earlier. The continued increase reflected higher prices across all major cereals. World wheat prices rose for the fourth consecutive month in May, supported by smaller expected harvests in major exporters, including the United States of America, where winter wheat crop conditions are among the least favourable in decades, while higher fuel and fertilizer costs added further upward pressure globally. Maize prices continued to be supported by stronger import demand in key markets.
The FAO Vegetable Oil Price Index averaged 185.0 points in May, down 9.0 points (4.6 percent) from April, marking the first monthly decline since the beginning of 2026. The decrease was mainly driven by lower prices of palm and soy oils, which more than offset increases in rapeseed oil and sunflower oil prices. After rising for five consecutive months, international palm oil prices declined, reflecting expectations of weaker global import demand and uncertainty in crude oil markets.
The FAO Meat Price Index averaged 130.5 points in May, almost unchanged (up 0.1 percent) from its revised April value and 7.7 points (6.3 percent) above its level a year earlier. Higher quotations for bovine and ovine meat, alongside a modest increase in poultry meat prices, were almost entirely offset by a decline in pig meat prices.
The FAO Dairy Price Index averaged 119.2 points in May, down 0.5 points (0.5 percent) from April and 34.5 points (22.4 percent) below its level a year earlier. International butter prices continued to decline in both Europe and Oceania, as improved milkfat availability and heightened competition among major exporters weighed on quotations.
The FAO Sugar Price Index averaged 95.1 points in May, up 6.6 points (7.5 percent) from April, marking the highest level since October 2025, but remaining 14.3 points (13.1 percent) below its level a year ago. The increase was mainly driven by concerns over an anticipated tightening of global sugar supplies in the coming months.
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