World food commodity prices were largely unchanged in May, as rising cereal and sugar prices offset weakness in vegetable oils, according to the latest Food and Agriculture Organization (FAO) Food Price Index released Friday.
The benchmark index averaged 130.8 points in May. That is down 0.2% from April but still 2.9% higher than a year earlier and 18.4% below its peak reached in March 2022 in the aftermath of the Russian invasion of Ukraine.
Cereal prices posted one of the strongest gains among major food categories in May. The FAO cereal price index averaged 114.3 points, up 2.6% from April and nearly 5% above year-ago levels. Wheat prices climbed for a fourth straight month, supported by deteriorating crop prospects in several major exporting countries, including the U.S. where winter wheat conditions rank among the weakest seen in decades. Rising fuel and fertilizer costs amid the U.S.-Iran conflict also added support to world wheat values.
Corn markets strengthened as import demand remained robust while tighter supplies in Brazil and the U.S. reduced export availability. Higher energy prices also contributed support through stronger ethanol demand. Feed grains followed suit, with barley and sorghum values increasing due to spillover effects from tighter wheat and corn markets. Rice prices also moved higher, rising 2.7% amid weather concerns in Asia and stronger crude oil prices that boosted production and transportation costs in several exporting countries.
Vegetable oils moved in the opposite direction, posting their first monthly decline of 2026. The FAO vegetable oil price index averaged 185 points, down 4.6% from April. The decline reflected weaker palm and soybean oil prices, although gains in rapeseed and sunflower oils limited losses.
Palm oil prices fell after five consecutive monthly increases as expectations for softer import demand weighed on the market alongside uncertainty in crude oil markets. Soybean oil values showed mixed performance, pressured by expanding South American export supplies but supported in the U.S. by firm biofuel demand. Meanwhile, rapeseed oil prices strengthened due to tightening supplies in Europe, while sunflower oil continued to rise amid persistent supply constraints, particularly from Ukraine.
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