The FAO Food Price Index, which measures changes in a basket of globally traded food commodities, averaged 130.8 points in May, 0.2% down from its revised April level of 131.0, but up 2.9% from a year earlier.
Despite the small downward correction for the April data, the index remained near its highest level since January 2023 and 18.4% below its March 2022 peak.
Cereal prices rose more than 2.6% on the month, with wheat up for a fourth straight month on smaller export harvest prospects, including in the United States, and higher fuel and fertiliser costs linked to the Iran conflict.
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Maize prices were also supported by stronger import demand and tighter supplies in Brazil and the U.S., the agency said.
Vegetable oil prices on average were still more than 20% above last year, as elevated energy costs following the effective closure of the Strait of Hormuz raised demand for biofuels made using organic materials, such as oil-rich plants.
Sugar prices jumped 7.5% from last month to 95.1 points, but remained 13.1% below their level a year ago. The increase was mainly driven by concerns over an anticipated tightening of global sugar supplies in the coming months.
In a separate cereal supply report, the FAO said it expected world cereal production – including rice in milled equivalent – to shrink 2% in 2026/27 to 2.98 billion tons.
Production of all major cereals is anticipated to decline, albeit for many from record levels reached in 2025, with the largest year-on-year decrease in percentage terms forecast for wheat and the smallest for maize and barley.
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