Global food prices decline by 2.6% in May — Report

…as sugar prices skyrocket

The Food and Agriculrutal Organisation’s Food Price Index fell to 124.3 in May 2023, the lowest since April 2021 and compared to an upwardly revised 127.7 in April.

According FAO, prices for vegetable oils went down 8.7%, a 6th consecutive decline, due to lower prices across palm, soy, rapeseed and sunflower oils.

Further, the report noted that cost of cereals fell 4.8%, standing now 25.3% below its record-high a year ago, prompted by a 3.5% decline in wheat prices due to prospects for ample global supplies in the upcoming 2023/24 season and the extension of the Black Sea Grain Initiative.

It added that the cost of dairy dropped 3.2%, amid a steep drop in cheese prices.

On protein, FAO noted that meat prices rose 1%, the 4th consecutive increase, amid higher demand for poultry and bovine meat.

The global sugar prices extended gains for a 4th month and were up 5.5%, amid rising concerns over how the development of the El Niño phenomenon may affect the 2023/24 crops, together with lower-than-earlier-expected global availabilities in the 2022/23 season. 

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