Global Food Prices Fall After Four Months; Grains, Meat, and Sugar Rise

May Global Food Price Index Drops 0.2% Month-on-Month to 130.8

Global food prices have reversed their upward trend and declined for the first time in four months. While the prices of grains, meat, and sugar rose, the prices of vegetable oils and dairy products fell.

According to the Ministry of Agriculture, Food and Rural Affairs, the United Nations Food and Agriculture Organization (FAO) announced on June 6 that the global Food Price Index for the previous month stood at 130.8, down 0.2% from 131.0 in the previous month. This index compares prices based on the average from 2014 to 2016, set at 100. After rising for three consecutive months from February to April, the index declined in May, marking a downward shift for the first time in four months.

Yonhap News Agency

By item, the prices of grains, meat, and sugar increased last month, while those of vegetable oils and dairy products decreased.

The Grain Price Index was 114.3, rising 2.6% from the previous month. Wheat prices climbed for the fourth consecutive month due to expectations of reduced harvests in major exporting countries and higher fuel and fertilizer costs. Corn prices remained elevated, driven by higher import demand and strong energy prices. The Rice Price Index also increased by 2.7%, influenced by weather concerns in Asian exporting countries and rising oil prices.

The Meat Price Index was 130.5, up 0.1% compared to the previous month. Prices for beef, lamb, and poultry rose, but this was mostly offset by declining pork prices.

The Sugar Price Index jumped 7.5% to 95.1 compared to the previous month. International sugar prices surged amid projections that more sugarcane in Brazil’s main growing regions would be used for ethanol production rather than sugar. In addition, concerns mounted over reduced production in major producing countries such as India and Thailand due to the El Nino phenomenon.

In contrast, the Vegetable Oil Price Index fell 4.6% from the previous month to 185.0. After rising for five consecutive months, palm oil prices turned downward, reflecting uncertainty in the crude oil market and forecasts of weaker global import demand. Soybean oil prices were also restrained by increased export volumes from South America. The Dairy Price Index declined 0.5% from the previous month to 119.2.

Last month, domestic consumer prices for agricultural and livestock products rose 1.8% year-on-year, which was lower than the overall consumer price inflation rate of 3.1%.

An official from the Ministry of Agriculture, Food and Rural Affairs stated, "External uncertainties such as international raw material prices persist, and there is also a possibility of abnormal weather during the summer. We will closely monitor the supply and demand situation for each item and mobilize all available measures to ensure stable supply and demand management for agricultural and livestock products."

This content was produced with the assistance of AI translation services.