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Global food prices still close to record high

WorldGlobal food prices still close to record high

Rome (The Times Groupe)- Food prices globally fell modestly for the second consecutive month in May, although wheat and poultry prices rose, according to the UN Food and Agriculture Organization (FAO).

In May of 2022, the FAO Food Price Index, which tracks monthly changes in the prices of a basket of common food commodities, fell 0.6% month-over-month to 157.4, still close to a record high of 159.7 points set in March.

As a result of Indonesia’s lifting of its export ban on palm oil, prices fell across palm, sunflower, soy, and rapeseed oils (3.5%).

The dairy price index also declined by 3.5%, the first decline in eight months.

“Prices of milk powders declined the most, linked to market uncertainties from the continued COVID19 lockdowns in China, while robust retail sales and high demand from restaurants in the Northern Hemisphere prevented cheese prices from falling significantly despite weakened global import demand,” FAO said.

Sugar prices fell 1.1% as a bumper crop in India boosted global supply prospects.

“The weakening of the Brazilian real against the US dollar, along with lower ethanol prices, also pressured world sugar prices downwards,” FAO said. wheat 

As a result, meat prices reached a new all-time high in May, increasing by 0.6% even as world bovine meat prices remained stable and those for pig meat declined.

A surge in demand in Europe and the Middle East has contributed to the rise in prices, which are the result of supply chain disruptions in Ukraine and recent avian flu cases.

“Export restrictions create market uncertainty and can result in price spikes and increased price volatility, the decrease in oilseeds prices shows how important it is when they are removed and let exports flow smoothly,” FAO Chief Economist Maximo Torero Cullen said in a statement.

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