The FAO released today its latest Food Price Index , which has remained largely unchanged from last month at 215.2 points. While this is 10 points higher than in May 2012, it still remains nearly 10 percent lower than the peak seen in February 2011.
The Cereals Price Index rose four points from April, largely based on a strong rebound in maize prices as the US experienced planting delays and a tightening of exports. Wheat and rice prices, on the other hand, remained largely unchanged in May.
The Oils and Fats Price Index was also unchanged from April. Higher-than-anticipated soyoil export supplies in Argentina, and good crop prospects in the US, contributed to keeping this index steady.
The Dairy Price Index fell 9 points in May, down from its exceptionally high April levels. The Meat Price Index remained unchanged, while the Sugar Price Index fell 2.6 points.
The latest AMIS Market Monitor was also released today, citing anticipated record production levels for wheat, maize, and rice. This increase is expected to lead to an overall increase in global supplies for 2013-14. Wheat production in particular is expected to hit a record in 2013. Soybean production estimates are also tentatively favorable, pointing to further global expansion from last year's drought-affected levels.