World food prices fell again in May

World food prices fell again in May after the first rise in a year in April, reported Food and Agriculture Organization of the United Nations (FAO).

The food price index stood at 124.3 in May, down 2.6% from April. Compared to March last year, when a historical maximum was recorded for this indicator, prices fell by 22.1%.

The grain price index fell by 4.8% over the month due to the fall in world quotations for corn (by 9.8%) and wheat (3.5%). The price reduction of the latter is due to a rather high level of stocks and the extension of the grain deal in May. At the same time, FAO notes an increase in rice prices due to increased purchases by Asian countries and reduced supplies by Vietnam and Pakistan.

The vegetable oil price index fell 8.7% in May on the back of higher yields and low purchases. Dairy products fell in price by 3.2% due to a sharp drop in the cost of cheese, while meat, on the contrary, rose in price by 1%. At the same time, sugar is becoming more expensive for the fourth month in a row, having increased by 5.5% in May, FAO notes.

Former Minister of Agriculture Dmitry Patrushev declaredthat the forecast for grain harvest in Russia in 2023 can be adjusted upwards. In April, he said that the grain harvest in the country, taking into account new regions, is projected at the level of 123 million tons at the end of the year, of which 78 million tons will fall on wheat. According to the minister, such a volume will ensure national food security.