1. Home
  2. Agriculture World

Global Food Prices Fall in May 2025 as Cereal, Sugar, and Oil Prices Drop: FAO

Global food prices declined slightly in May 2025, led by steep drops in cereal, sugar, and vegetable oil prices, according to the FAO. Despite the overall dip, butter and bovine meat prices hit historic highs amid strong global demand.

Saurabh Shukla
Vegetable oil prices took a more noticeable hit, falling by 3.7 percent in May. (Photo Source: Canva)
Vegetable oil prices took a more noticeable hit, falling by 3.7 percent in May. (Photo Source: Canva)

Global food commodity prices witnessed a slight decline in May, according to the latest report from the Food and Agriculture Organization (FAO) of the United Nations. The FAO Food Price Index dropped to an average of 127.7 points, marking a 0.8 percent dip from April, although still 6 percent higher than the same month last year. The downward trend was primarily influenced by significant falls in the international prices of maize and palm oil, which outweighed the sharp increases in prices of butter and bovine meat.

The FAO Cereal Price Index fell by 1.8 percent compared to April, driven by abundant maize supplies due to strong harvests in Argentina and Brazil and a promising outlook in the United States. Wheat prices also dipped slightly owing to improved crop conditions in the Northern Hemisphere. However, rice prices rose by 1.4 percent, reflecting firm demand for fragrant rice, higher Indica rice prices, and currency shifts.

Vegetable oil prices took a more noticeable hit, falling by 3.7 percent in May. Palm oil prices slumped significantly due to seasonal production surges in Southeast Asia, while soy oil prices were impacted by increased availability from South America and weaker demand from the biofuel industry. Rapeseed and sunflower oils also saw price drops amid improved supply prospects and reduced global demand.

Sugar prices fell 2.6% due to economic uncertainties, anticipated production recovery, and concerns over lower demand from the food and beverage industries.On the other hand, meat prices rose by 1.3%, largely due to higher prices for pig, ovine and bovine meat, with the latter hitting a new record high. Poultry prices dropped, particularly in Brazil, where bird flu outbreaks led to import bans and surplus supplies.

Dairy prices edged up by 0.8 percent, supported by robust demand from Asian markets. Butter prices remained at historic highs, pushing up cheese and milk powder prices.

In a separate update, FAO’s new Cereal Supply and Demand Brief forecasts global cereal production to hit a record 2,911 million tonnes in 2025, an increase of 2.1 percent from the previous year. Cereal use is expected to rise to 2,898 million tonnes, and global stocks could grow by 1 percent to 873.6 million tonnes, offering some recovery after last year’s decline.

The global cereal trade is also projected to grow by 1.9 percent, mainly driven by a 3.8 percent rise in wheat trade, despite a slight dip in rice exports.

Test Your Knowledge on International Day for Biosphere Reserves Quiz. Take a quiz
Share your comments
#Top on Krishi Jagran

Subscribe to our Newsletter. You choose the topics of your interest and we'll send you handpicked news and latest updates based on your choice.

Subscribe Newsletters