Rapid rise in global food prices in May

NEW DELHI: World food prices rose in May at their fastest monthly rate in more than a decade, even as world cereal production is on track to hit a new record, the United Nations said on Thursday Food and Agriculture United (FAO).
The FAO food price index averaged 127.1 points in May, 4.8% more than in April and 39.7% more than in May 2020. A combination of factors was attributed the sharp increase, including increased demand, production delays, crop disruptions and supply bottlenecks. . A surge in international prices for vegetable oils, sugar and grains has pushed the index, which tracks monthly changes in international prices for commonly traded food products, to its highest value since September 2011 and just 7 , 6% below its historic high.
The FAO cereal price index rose 6.0% from April, driven by international maize prices, which were on average 89.9% above their value a year earlier. However, corn prices started to decline in late May, mainly due to improved production prospects in the United States. International wheat prices also fell at the end of the month, but rose on average 6.8% in May compared to April, while international rice prices remained stable.
The FAO vegetable oil price index rose 7.8% in May, mainly reflecting higher prices for palm, soybean and rapeseed oils. Palm oil prices have increased due to the slowdown in production in Southeast Asian countries, while the outlook for robust global demand, especially from the biodiesel sector, has pushed prices higher. soybean oil price.
The FAO Sugar Price Index rose 6.8% from April, largely due to harvest delays and concerns about declining crop yields in Brazil, even as export volumes India’s major investments helped to dampen the price spike.
The FAO Meat Price Index rose 2.2% from April due to a faster pace of import purchases by China, as well as growing domestic demand for poultry and meat. pork in the main producing regions.
The FAO dairy price index rose 1.8% in the month, averaging 285 above its level a year ago. The increase was led by strong import demand for skimmed milk and whole milk powders, while butter prices fell for the first time in nearly a year due to the increase in New Zealand export offer.

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