The benchmark measure for world food commodity prices remained broadly stable in May.

The Food and Agriculture Organization of the United Nations (FAO) said declines in vegetable oil quotations offset increases in those for cereals and sugar.

The FAO Food Price Index, which tracks monthly changes in the international prices of a basket of globally-traded food commodities, averaged 130.8 points in May 2026.

This is down 0.2% from its revised April level and 2.9% percent higher than its year-earlier level.

World food prices

Boubaker Ben-Belhassen, director of the FAO’s markets and trade division, said that while global food commodity markets have remained broadly resilient, "rising cereal prices underscore vulnerability to weather-related risks and disruptions in energy and input markets".

"Continued uncertainty affecting key trade routes, including the Strait of Hormuz, could reduce fertiliser use and place additional pressure on food prices, highlighting the need for coordinated international action," he said.

The FAO Cereal Price Index increased by 2.6% from April and was nearly 5% higher than a year ago, reflecting higher prices across all major cereals amid higher fuel and fertiliser costs globally and weather-related pressures.

World wheat prices rose 3.4% on the month - and 7.8% from their year-earlier level - supported by smaller expected harvests in major exporters, including the US, where winter wheat crop conditions are among the least favourable in decades.

Meat and dairy

The FAO Meat Price Index inched up 0.1%, the FAO said.

World bovine meat prices rose on the back of robust import demand, particularly from China and the US, while pigmeat prices declined, mainly due to lower prices in the EU amid abundant supplies and subdued import demand.

The FAO Dairy Price Index declined by 0.5% from the previous month, led down by international butter prices.

Cheese prices were mostly stable while skim milk powder prices increased.

Whole milk powder prices showed mixed developments, the FAO said.

Cereal trade

World cereal production in the 2026/2027 season is expected to drop by 2% year-on-year to over 2.98 billion tonnes, led by declining wheat harvests, according to the FAO’s latest cereal supply and demand brief.

The expected decline follows a 6.1 percent increase in 2025/26 to a record three billion tonnes, with the marketing season coming to an end.

This robust growth led to an estimated 9.5% increase in global cereals stocks.

World cereal utilisation is forecast to increase by 0.6% in 2026/2027, slowing down from the 2.7% pace recorded in the previous season.

Based on current forecasts, world cereal stocks are predicted to contract slightly, by 0.3%, due mostly to lower anticipated rice inventories, leaving the global cereal stock-to-use ratio, at 31.7%, close to its earlier level.

After expanding by 4.8% in 2025/2026, global cereal trade is predicted to decline by 0.3% to 507.2 million tonnes in the year ahead, as expected lower wheat and barley traded volumes more than offset foreseen increases in maize and rice shipments.