World food prices stable in May as vegetable oil drop offsets gains - FAO
Cereal costs rise on weather risks, higher fuel and fertiliser prices
5 June 2026
1 minute read
By: The benchmark measure for world food commodity prices remained broadly stable in May, as declines in vegetable oil quotations offset increases in cereals and sugar, according to data released Friday by the Food and Agriculture Organization of the United Nations.
The FAO Food Price Index, which tracks monthly changes in the international prices of a basket of globally traded food commodities, averaged 130.8 points in May 2026, down 0.2% from its revised April level and 2.9% higher than a year earlier.
"While global food commodity markets have remained broadly resilient, rising cereal prices underscore vulnerability to weather-related risks and disruptions in energy and input markets. Continued uncertainty affecting key trade routes, including the Strait of Hormuz, could reduce fertilizer use and place additional pressure on food prices, highlighting the need for coordinated international action," said Boubaker Ben-Belhassen, director of FAO's Markets and Trade division.
The FAO Cereal Price Index increased 2.6% from April and was nearly 5% higher than a year ago, reflecting higher prices across all major cereals amid higher fuel and fertiliser costs globally and weather-related pressures. World wheat prices rose 3.4% on the month — and 7.8% from their year-earlier level — supported by smaller expected harvests in major exporters, including the US, where winter wheat crop conditions are among the least favourable in decades. US Hard Red Winter wheat prices in May 2026 were 28% higher than in May 2025.
Maize prices rose 1.9% — 3.9% annualised — on the back of stronger import demand in key markets, tighter availability in Brazil and the US, and firmer energy prices that boosted ethanol-related demand. The FAO All-Rice Price Index increased 2.7% from the previous month as weather concerns and higher crude oil prices underpinned quotations in some leading Asian exporting countries.
The FAO Meat Price Index inched up 0.1%. World bovine meat prices rose on the back of robust import demand, particularly from China and the US, while pig meat prices declined, mainly due to lower prices in the European Union amid abundant supplies and subdued import demand.
The FAO Dairy Price Index declined 0.5% from the previous month, led down by international butter prices. Cheese prices were mostly stable while skim milk powder prices increased. Whole milk powder prices showed mixed developments.
