LIVE UPDATES
The United Nations world food price index increased for the third consecutive month due to higher prices for cereals and dairy products, despite decreases in sugar and vegetable oil prices in May.
The index averaged 120.4 points, up 0.9% from April but 3.4% lower than the previous year.
The rise was driven by concerns about limited crop conditions affecting harvests in key producing regions.
Additionally, dairy prices rose due to increased demand before summer holidays, while sugar prices fell as Brazil began a new harvest.
Vegetable oil prices also declined due to increased seasonal output.
The FAO projected that world cereal production for 2024/25 will be similar to the previous year's record output, with increases in barley, rice, and sorghum offsetting declines in maize and wheat.
However, adverse weather in the Black Sea region may lead to a downgrade in world wheat production.
Cereal utilization is expected to reach a new record high, while cereal stocks are likely to increase.
