dinero_admin The FAO food price index averaged 127.7 points in may 2025, down 0.8% from april. Despite the increase in dairy and meat prices, the fall in the values of cereals, vegetable oils and sugar were enough to maintain the downward trend. However, the index is still 6% above the level of a year ago, although it remains 20.3% below the record reached in march 2022.
The grain price index fell by 1.8% compared to april, averaging 109.0 points. This reduction was mainly driven by the sharp drop in corn prices, due to increased availability in South America and the prospects of a record crop in the United States. Wheat, sorghum, and barley prices also declined, while rice prices increased by 1.4% due to strong demand for aromatic varieties and currency factors in exporting countries.
As for vegetable oils, the index declined by 3.7% in may, marking a steady decline due to the fall in palm, soybean, rapeseed, and sunflower oil prices. The meat price index showed an increase of 1.3%, reaching an average of 124.6 points. Beef, lamb and pork rose due to high global demand and factors such as the resumption of German exports after controlling foot-and-mouth disease.
Meanwhile, the dairy index rose 0.8% to 153.5 points, up 21.5% year-on-year. Butter and whole milk powder prices remained high due to strong demand in Asia and limited supply, while cheese prices also increased. Only skim milk powder recorded a slight drop due to the export surplus.
The sugar index declined by 2.6% in may, marking its third consecutive month of decline. The fall is attributed to lower global demand in the face of economic uncertainty and forecasts of a recovery in production in India and Thailand, favored by the early arrival of the monsoons. The current index is 6.6% below the level recorded in may 2024.
