Global food prices dipped 0.2% in May, staying near 3-year high

Global food prices edged lower in May, but remained close to their highest level since January 2023 as cereals and sugar climbed while vegetable oils fell. The UN Food and Agriculture Organization's Food Price Index averaged 130.8 points, down from a revised 131.0 in April but 2.9% above a year earlier. Cereal prices rose more than 2.6% on the month, with wheat gaining for a fourth straight month on weaker export harvest prospects, including in the United States, and higher fuel and fertilizer costs tied to the Iran conflict. Maize also rose on stronger import demand and tighter supplies in Brazil and the US. Vegetable oil prices fell 4.6%, though they remained more than 20% above 2025 levels. In a separate outlook, the FAO forecast world cereal production for 2026/27 at 2.98 billion tonnes, down 2%.