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The FAO Cereal Price Index averaged 118.7 points in May, up 6.3% from April but still 8.2% below its May 2023 value. Global export prices of all major cereals rose month-on-month, with wheat prices increasing the most. The sharp monthly rise was largely due to growing concerns about unfavorable crop conditions for the 2024 harvests, possibly constraining yields in some main producing areas of several major exporting countries, including in parts of Europe, Northern America, and the Black Sea region. Additionally, damage to the Black Sea shipping infrastructure exacerbated the upward pressure on prices.
Maize export prices also increased in May, reflecting production concerns in both Argentina (due to crop damage from the spread of Spiroplasma disease) and Brazil (due to unfavourable weather), along with limited farmer selling activity in Ukraine amidst seasonally tightening supplies and a strong global demand. Spillover effects from the wheat markets also affected maize prices. For other coarse grains, world prices of barley and sorghum also rose in May. The FAO All Rice Price Index edged up by 1.3% in May, driven by higher Indica quotations, influenced by expectations of sales to Indonesia and Brazil, and easing harvest pressure.
June 7, 2024/ FAO.
https://www.fao.org/
