June 5, 2020

UN FAO reports 17-month low in world food price index in May

The United Nations (UN) Food and Agriculture Organisation (FAO) reported falling world food prices for a fourth month in a row due to the worsening economy caused by the global COVID-19 pandemic, Reuters reported.

The FAO food price index measures monthly changes for one basket of cereals, oilseeds, meat, dairy products and sugar. It averaged 162.5 points in May, a 1.9% drop compared to April and the lowest recorded average since December 2018.

Swine and poultry meat quotations have been decreasing based on high export numbers, even though there is higher import demand in East Asia. The meat index dropped 0.8%.

Lower import demand for cheese and butter has dropped the dairy index by 7.3%.

Grain prices continue to fall, with a 1% drop in the cereal price index. US maize prices fell 16% and wheat export prices are also on the downtrend due to expectations of ample global supplies.

-      Reuters