The increase in the CPIF in the category “cereals” and “sugar” last month was offset by a decrease in the price indices for vegetable oils and dairy products. Whereas the price index for meat remained practically unchanged. The CPIF was 3.7 points (2.9 percent) higher than a year ago, but 29.4 points (18.4 percent) below its peak in March 2022, FAO said.
Grain prices rose
Cereal prices in May 2026 were 2.6 percent above their April level and 4.9 percent above last year. All major cereals rose in price.
At the end of May, world wheat prices continued to grow for the fourth month in a row. This was facilitated by the reduction of harvest forecasts in major exporting countries. This also applies to the USA, where the condition of winter wheat crops is estimated as one of the least favorable for the last decades. Global prices were pushed upwards by rising fuel and fertilizer costs.
Corn prices continued to strengthen under the influence of stronger import demand in key markets. Reduced supply of this grain in Brazil and the USA also had an impact. Higher energy prices, which stimulate demand for corn for ethanol production, also played a significant role.
World prices for sorghum and barley increased mainly under the influence of the situation in the world corn and wheat markets, where there was a reduction in supply.
In May 2026, the FAO All Rice Price Index increased by 2.7 percent due to concerns about unfavorable weather conditions as well as higher prices for crude oil and petroleum products. For these reasons, rice exchange quotations in a number of major Asian exporting countries strengthened.
Vegetable oils fell significantly in price – for the first time since the beginning of 2026
In May, the FAO price index for this product category fell by 4.6 percent from April levels. This was mainly due to lower prices for palm and soybean oils, which more than offset higher prices for rapeseed and sunflower oils.
After rising steadily for five months, global palm oil prices declined due to a projected weakening in global import demand and uncertainty in the crude oil market.
The dynamics of world soybean oil prices remained multidirectional. A seasonal increase in export supply put downward pressure on prices in South America. Whereas steady demand from the biofuels sector supported price growth in the USA.
At the same time, rapeseed oil prices rose on the back of seasonal supply reduction in the European Union. Sunflower oil quotations continued to rise under the influence of limited supply in Ukraine.
Meat prices remained almost unchanged
The FAO Meat Price Index for May was up 0.1% from April, but was 6.3% above last year’s level. The increase in beef and lamb quotations along with a moderate increase in poultry prices was almost completely offset by a decline in pork prices.
In May, the growth of world prices for beef was once again recorded. This was facilitated by active import demand, primarily from China and the USA. At the same time, the volume of export supply remained limited.
World prices for mutton increased. The growth of quotations in New Zealand due to limited supply was only partially offset by a temporary decrease in export prices and a slight increase in supply in Australia.
Poultry prices rose marginally. Higher prices in Brazil, supported by strong global import demand, were partially offset by a slight decline in the US on the back of ample supply.
In contrast, pork prices declined, mainly due to falling prices in the European Union amid oversupply and sluggish import demand.
Dairy prices continue to decline
The decline in the FAO price index for this product category was 0.5 percent from April and 22.4 percent from last year’s level.
World butter prices continued to decline in Europe and Oceania as increased supply of milk fat and increased competition among leading exporters put pressure on quotations.
Cheese prices declined only marginally as pressure from ample export supply and increased competition in global markets was partially offset by robust demand for whey and milk protein.
Once again, skimmed milk powder prices rose, particularly in Europe. This was supported by strong import demand in the Middle East, North Africa and parts of Asia. Whole milk powder prices remained mixed. In Oceania, a moderate growth was recorded against the background of seasonal reduction of export supply. In Europe, quotations of this product decreased due to weakening demand from China and generally favorable outlook for global supply.
Sugar prices rose
The FAO Sugar Price Index for May was 7.5% higher than April. However, the index is still 13.1% lower than last year. The rise in the index was mainly due to concerns about the projected reduction in global sugar supply in the coming months. Data for key southern sugarcane growing regions in Brazil showed a decline in the share of this raw material used specifically for sugar production. This reinforced expectations of growth in the volumes of its processing into ethanol and provided support for global sugar prices.
At the same time, the increase in sugarcane processing in the second half of April led to an increase in sugar production, which limited further price increases. Price increases were further supported by concerns that El Niño conditions would negatively impact sugar production in India and Thailand in the 2026-2027 season, which could reduce global export supply.
