Key facts
- World cereal prices reached a 19-month high in May.
- Rising fuel and fertilizer costs are key drivers of cereal price increases.
- Overall food prices dipped 0.2% in May but remain near a three-year high.
- Cereal prices rose 2.6% in May, led by wheat and maize.
- Global cereal production is projected to decrease by 2% in 2026/27 to 2.98 billion tons.
World food prices remained broadly stable in May, with the FAO Food Price Index averaging 130.8 points, a 0.2% decrease from April's revised level, though still 2.9% higher than a year ago and near a three-year high. Declines in vegetable oil quotations offset increases in cereals and sugar. Cereal prices specifically rose 2.6% in May, driven by higher wheat and maize prices, attributed to smaller harvest prospects, elevated fuel and fertilizer costs, and weather-related pressures. World wheat prices increased 3.4% month-on-month and 7.8% year-on-year due to smaller expected harvests in major exporting countries. The FAO also projected global cereal production for 2026/27 to decrease by 2% year-on-year to 2.98 billion tons, with global cereal trade predicted to decline by 0.3%. The FAO Meat Price Index inched up 0.1%, while the Dairy Price Index declined by 0.5%.