World food prices edged lower in May from the previous month but remained close to their highest level in more than two years, the United Nations Food and Agriculture Organization (FAO) said on Friday, as diverging trends across key commodities underscored persistent volatility in global food markets.
The FAO Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 130.8 points in May, down 0.2 percent from a revised 131.0 points in April, but still 2.9 percent higher than a year earlier.
Despite the slight monthly decline, the index remains at its highest level since January 2023 and is still 18.4 percent below the record peak reached in March 2022.
The FAO said the overall easing was driven mainly by a fall in vegetable oil prices, which dropped 4.6 percent on the month, marking their first decline this year. Lower palm and soybean oil prices offset gains in rapeseed and sunflower oils, with expectations of weaker global import demand weighing on sentiment.
After five consecutive months of increases, palm oil prices retreated, reflecting uncertainty in global crude oil markets and shifting expectations for biofuel demand. However, vegetable oil prices remained more than 20 percent higher than a year earlier, supported by elevated energy costs and sustained demand for biofuel feedstocks.
Cereal prices, by contrast, rose more than 2.6 percent in May, extending gains driven by tightening supply conditions in major producing regions. Wheat prices increased for a fourth straight month, supported by weaker export outlooks in key producing countries, including the United States, as well as higher production costs linked to energy and fertiliser prices.
Maize prices also climbed, buoyed by stronger import demand and tighter supply conditions in Brazil and the United States, the FAO said.
Sugar prices recorded the sharpest monthly increase among major food groups, jumping 7.5 percent to 95.1 points, though still remaining 13.1 percent below their level a year earlier. The rise was attributed largely to concerns over tightening global supplies in the coming months.
More Read
In a separate outlook, the FAO warned that global cereal production is expected to decline in the 2026/27 season, falling 2 percent to 2.98 billion tonnes, measured in milled rice equivalent.
Production is projected to fall across most major grains, although from historically high levels reached in 2025. Wheat is expected to record the steepest proportional decline, while maize and barley output are forecast to fall more modestly.
The FAO said the outlook reflects a combination of weather uncertainty, input cost pressures and lingering effects of geopolitical tensions that have disrupted global supply chains and raised production costs in several regions.
Overall, analysts say the latest data points to a global food market that is stabilising after recent volatility, but remains vulnerable to shocks from energy prices, conflict-related disruptions and climate variability.
