Global Food Prices Surge Rapidly – FAO

Global Food Prices Surge Rapidly – FAO
In May, global food prices rose 39.7% compared to the same period of 2020.

Global food prices rose in May at their fastest monthly rate in more than a decade. The prices climbed for 12th consecutive month and hit their highest level since September 2011, the United Nations food agency said on Thursday.

The FAO Food Price Index, which tracks monthly changes in the international prices of commonly-traded food commodities, averaged 127.1 points in May, 4.8% higher than in April and 39.7% higher than in May 2020.

FAO's cereal price index rose 6% in May month-on-month and 36.6% year-on-year.

The sugar index posted a 6.8% month-on-month gain, due largely to harvest delays and concerns over reduced crop yields in Brazil, the world's largest sugar exporter, according to FAO.

The FAO vegetable oil price index increased by 7.8% in May, lifted primarily by rising palm, soy and rapeseed oil quotations.

The meat price index rose 2.2% from April, with quotations for all meat types buoyed by a faster pace of import purchases by east Asian countries, mainly China.

Dairy prices jumped 1.8% on a monthly basis and were up 28% than a year earlier.

FAO also posted its first forecast for world cereal production in 2021, predicting output of nearly 2.821 billion tons – a new record and 1.9% up on 2020 levels. Global wheat production is expected to rise 1.4% year-on-year, while rice production was forecast to grow 1%.