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1036. Global Food Price Trends for May 2024

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1036. Global Food Price Trends for May 2024  


The Food and Agriculture Organization of the United Nations (FAO) released its global food price trends on June 7. The average value in May 2024 was 120.4 points, a slight increase of 1.1 points (0.9%) from April, reflecting a slight increase in grain and dairy prices slightly outpacing the decline in sugar and cooking oil prices. Despite the third consecutive month of price increases, it was still 3.4% lower than the previous year and 24.8% lower than the historic high of 160.2 points in March 2022.

The grain price index rose 6.3% month-on-month to 118.7 points in May, but was 8.2% lower year-on-year. Export prices for all major grains increased month-on-month, with wheat prices in particular soaring in 2024, reflecting concerns about worsening conditions for harvesting in key producing regions in major exporting countries such as parts of Europe and the North American and Black Sea regions. In addition, the destruction of infrastructure in the Black Sea region exerted upward pressure on prices. Maize prices also rose due to concerns about production conditions in Argentina (crop damage due to the spread of Spiroplasma disease) and Brazil (bad weather), as well as seasonal low sales from Ukraine and strong global demand. Rice prices rose 1.3% in May, reflecting higher estimates for indica rice sales to Indonesia and Brazil.

Vegetable oil price indicators fell 2.4% month-on-month, but remain 7.7% higher year-on-year. The price decline reflects a decline in the estimated price of palm oil due to seasonal supply increases by Southeast Asian producers and a prolonged slump in global demand, which has outpaced the rise in soybean, rapeseed and sunflower oil prices. Meanwhile, global soybean prices rose on the back of increased demand from Brazil's biofuels sector, while rapeseed, and sunflower reflected seasonal sources from the Black Sea region and a tight supply outlook for the 2024–25 season.

Sugar prices fell 7.5% since April, marking the third consecutive month of decline, down 25.5% since May last year and the lowest since January 2023. Favorable production prospects due to favorable weather conditions in Brazil and low international oil prices are putting downward pressure on international sugar prices.


Contributor: IIYAMA Miyuki (Information Program) 


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