World Food Commodity Prices Lower in May

World food commodity prices eased slightly in May as lower corn and palm oil values offset gains in beef and butter. 

The Food and Agriculture Organization (FAO) of the United Nations on Friday reported its food price index - which tracks monthly changes in the international prices of a set of globally traded food commodities - averaged 127.7 points in May, down 0.8% from April but still 6% higher than a year earlier. 

A sharp fall in corn prices helped drag down the FAO cereal price index, which dropped 1.8% in May. Strong harvests and “robust availability” in Argentina and Brazil, along with expectations for a record crop in the US, weighed on corn prices, the FAO said.  World wheat prices also slipped in May, pressured by improving crop conditions in the northern hemisphere. On the other hand, the rice index increased by 1.4% last month. 

The FAO vegetable oil price index dropped by 3.7% from April, with quotations down for all major oils. International palm oil prices declined markedly primarily due to seasonal output and availability increases in Southeast Asia. Meanwhile, global soy oil prices were impacted by higher supplies in South America and subdued demand for biofuel feedstock, while rapeseed oil prices eased on improved supply prospects in the European Union. Sunflower oil prices fell due to weakening global import demand and reduced price competitiveness, the FAO said.