June 13, 2022

FAO Cereal Price Index rises above May 2021 value

The FAO Cereal Price Index averaged 173.4 points in May, up 3.7 points (2.2%) from April and as much as 39.7 points (29.7%) above its May 2021 value.

International wheat prices rose for a fourth consecutive month, up 5.6% in May, to average 56.2% above their value last year and only 11% below the record high reached in March 2008. The steep increase in wheat prices was in response to an export ban announced by India amid concerns over crop conditions in several leading exporting countries, as well as reduced production prospects in Ukraine due the war in the country.

By contrast, international coarse grain prices declined by 2.1% in May but remained 18.1% above their value a year ago. Slightly improved crop conditions in the United States, seasonal supplies in Argentina and the imminent start of Brazil's main maize harvest led maize prices to decline by 3.0%. However, they remained 12.9% above their level of May 2021.

Similarly, international sorghum prices also fell in May, declining by 3.1%, while spillover from the strength in wheat markets and concerns over crop conditions in the European Union boosted barley prices by 1.9%.

The FAO Vegetable Oil Price Index averaged 229.3 points in May, down 8.3 points (3.5%) month-on-month, yet remaining markedly above its year-earlier level. The monthly decline mainly reflects lower prices across palm, sunflower, soy and rapeseed oils.

International soy and rapeseed oil prices declined somewhat in May, chiefly weighed by sluggish import demand in view of elevated costs in recent months.
 

- FAO