Global Food Prices Rise for Third Consecutive Month in May

Date:

LONDON, June 7 – The United Nations’ world food price index climbed for the third month in a row in May, driven by rising prices for cereals and dairy products, which offset declines in sugar and vegetable oils.

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According to the U.N. Food and Agriculture Organization (FAO), the price index, which tracks the most globally traded food commodities, averaged 120.4 points in May, marking a 0.9% increase from its revised April level. Despite this rise, the May reading was still 3.4% lower than the same period last year.

The FAO index had reached a three-year low in February as food prices continued to decrease from the record peak experienced in March 2022, following Russia’s invasion of Ukraine, a major crop exporter.

The increase in May was primarily supported by a 6.3% month-on-month rise in cereal prices, amid growing concerns about adverse crop conditions affecting the 2024 harvests in key regions such as North America, Europe, and the Black Sea.

Dairy prices also saw an increase of 1.8% from April, driven by higher demand ahead of the summer holidays and fears of reduced milk production in Western Europe. Conversely, the FAO’s sugar index dropped significantly by 7.5% on a monthly basis, as the new harvest in top producer Brazil began well. Vegetable oil prices fell by 2.4%, influenced by rising seasonal palm oil production.

In a separate report on cereal supply and demand, the FAO projected world cereal production for 2024/25 to be around 2.846 billion metric tons, roughly equivalent to the record output of 2023/24. Increased production of barley, rice, and sorghum is expected to offset declines in maize and wheat. However, the FAO cautioned that adverse weather conditions in the Black Sea region might lead to a downgrade in global wheat production, a possibility not yet reflected in the forecast.

World cereal utilization for 2024/25 is anticipated to rise by 0.5% year-on-year, reaching a new record high of 2.851 billion tons. Additionally, global cereal stocks are expected to increase by 1.5% from their opening levels to a record 897 million tons.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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