FAO Food Price Index stable amid diverging commodity price trends

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, tighter availability in Brazil and the United States of America, and firmer energy prices boosting ethanol-related demand. International prices of sorghum and barley increased mainly due to spillover effects from tighter global maize and wheat markets. The FAO All Rice Price Index increased by 2.7 percent in May 2026, as weather concerns and higher prices of crude oil and its derivatives underpinned quotations in some leading Asian exporting countries.

» 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. World soyoil prices showed mixed trends, with seasonal increases in exportable supplies weighing on prices in South America, while firm biofuel demand supported values in the United States of America. Meantime, rapeseed oil prices rose on seasonally tightening supplies in the European Union, while sunflower oil quotations continued to increase, underpinned by persistent supply tightness, particularly in Ukraine.

» 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. International bovine meat prices rose further in May, supported by robust import demand, particularly from China, where import quota allocations continued to be rapidly utilized, and from the United States of America amid persistently tight domestic supplies. At the same time, ongoing herd rebuilding in several major producing countries continued to constrain exportable availabilities. World ovine meat prices increased, as higher quotations in New Zealand, underpinned by limited supplies, were only partially offset by a temporary easing in Australian export prices, where dry weather forecasts prompted increased slaughtering, expanding exportable supplies. Poultry meat prices edged up, as higher prices in Brazil, supported by firm global import demand, were partly offset by slightly lower quotations in the United States of America, reflecting ample supplies. By contrast, 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 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. Cheese prices eased only marginally as ample export availability and intensified competition on international markets were partly offset by continued support from whey and dairy protein markets, which helped sustain values in major exporting regions. By contrast, skim milk powder prices increased further, particularly in Europe, supported by firm import demand from the Near East, North Africa, and parts of Asia. Whole milk powder prices showed mixed developments, with modest increases in Oceania, supported by seasonally tightening export availability following the production peak and continued demand from Southeast Asia and the Near East, largely offset by lower European quotations reflecting subdued demand from China and generally comfortable global supplies.

» 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. In Brazil’s key southern growing regions, data showing a lower share of sugarcane allocated to sugar production raised expectations of greater diversion to ethanol, supporting world sugar prices. However, strong sugarcane crushing in the second half of April boosted sugar output and limited the upward pressure. Additional support to prices resulted from concerns that El Niño conditions could adversely affect sugar production in India and Thailand in 2026/27, potentially reducing global export availability.

Tags: FAO, grain, prices, sugar, meat, oilseeds, edible oils