FAO Reports Stable Global Food Prices Amid Cereal Risks

The Food and Agriculture Organization of the United Nations reported that world food prices remained broadly stable in May 2026. The Food Price Index averaged 130.8 points, representing a 0.2% decrease from April, though prices remained 2.9% higher than the previous year.

Cereal prices increased by 2.6% due to weather-related risks, rising fuel and fertilizer costs, and diminished harvest prospects in the United States. The agency forecast a 2% shrink in global cereal production for the 2026/27 season, estimating totals at 2.98 billion tons. Sugar prices rose 7.5% as global supply tightened and Brazil diverted more sugarcane to ethanol production.

Vegetable oil prices saw their first monthly decline of the year, falling 4.6% because of lower palm and soy oil costs. Despite the overall stability, officials warned that disruptions in energy markets and key trade routes, specifically the Strait of Hormuz, continue to threaten fertilizer availability and place upward pressure on food prices.