More Stories

Informist, Friday, Jun. 5, 2026

MUMBAI – The Food Price Index of the United Nations Food and Agriculture Organization fell 0.2% on month in May to 130.8 points, as increase in prices of cereals and sugar were offset by declines in vegetable oils and dairy products. Concerns that El Nino conditions could adversely affect sugar production in India in 2026-27 contributed to the rise in sugar prices. However, the overall index was up 2.9% on year, FAO said in a release Friday.

The cereal price index averaged 114.3 points in May, up 2.6% on month and 4.9% on year. The continued increase reflected higher prices across all major cereals. "World wheat prices rose for the fourth consecutive month in May, supported by smaller expected harvests in major exporters, including the United States of America, where winter wheat crop conditions are among the least favourable in decades, while higher fuel and fertilizer costs added further upward pressure globally," FAO said.

Maize prices continued to be supported by stronger import demand in key markets, tighter availability in Brazil and the United States of America, and firmer energy prices boosting ethanol-related demand. The FAO All Rice Price Index increased 2.7% in May as weather concerns and higher prices of crude oil and its derivatives underpinned quotations in some Asian exporting countries.

The vegetable oil price index averaged 185.0 points in May, down 4.6% from April, marking the first monthly decline since the beginning of 2026. The decrease was mainly driven by lower prices of palm and soy oils, which more than offset increases in rapeseed oil and sunflower oil prices. "After rising for five consecutive months, international palm oil prices declined, reflecting expectations of weaker global import demand and uncertainty in crude oil markets," it said.

The FAO's meat price index averaged 130.5 points in May, nearly unchanged from its revised April value, but 6.3% above its level a year earlier.

Dairy price index in May averaged 119.2 points, down 0.5% from April and a hefty 22.4% below its level a year earlier. Global butter prices continued to decline in both Europe and Oceania, as improved milkfat availability and heightened competition among major exporters weighed on quotations. Cheese prices eased only marginally as ample export availability and intensified competition on international markets were partly offset by continued support from whey and dairy protein markets, which helped sustain values in major exporting regions.

By contrast, skim milk powder prices increased further, particularly in Europe, supported by firm import demand from the Near East, North Africa, and parts of Asia. Whole milk powder prices showed mixed developments, with modest increases in Oceania, supported by seasonally tightening export availability following the production peak and continued demand from Southeast Asia and the Near East, but largely offset by lower European quotations reflecting subdued demand from China and generally comfortable global supplies.

The index for sugar prices at 95.1 points in May, up 7.5% from April, marked the highest level since October 2025, but remained 13.1% below its level a year ago. "The increase was mainly driven by concerns over an anticipated tightening of global sugar supplies in the coming months. In Brazil's key southern growing regions, data showing a lower share of sugarcane allocated to sugar production raised expectations of greater diversion to ethanol, supporting world sugar prices. However, strong sugarcane crushing in the second half of April boosted sugar output and limited the upward pressure. Additional support to prices resulted from concerns that El Nino conditions could adversely affect sugar production in India and Thailand in 2026/27, potentially reducing global export availability."  End

Reported by Abhijit Doshi

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.