22:00 - 5.06.2026

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June 5, Fineko/abc.az. The UN Food and Agriculture Organization (FAO) reported that the Food Price Index averaged 130,8 points in May 2026. Although this marks a minor 0,2% decline month-on-month, global commodity prices remain close to their highest levels in over three years, up 2,9% compared to the same period last year.

ABC.AZ reports that increases in grain and sugar prices were largely offset by declines in vegetable oils and dairy products.

War and Logistics Risks: Due to the war involving Iran, disruptions to fuel and fertilizer flows through the Strait of Hormuz have pushed up production costs for corn and rice. Boubaker Ben-Belhassen, Director of FAO’s Markets and Trade Division, warned that continued maritime uncertainty could reduce fertilizer usage and drive prices higher, emphasizing the need for coordinated international action.

May Sub-Index Highlights:

• Sugar: Surged by 7,5% due to El Niño concerns affecting production in India and Thailand, combined with Brazil shifting more sugarcane toward ethanol.

• Cereals: Increased by 2,6% from April (up ~5% year-on-year).

• Vegetable Oils: Dropped by 4,6% on weakening global import demand, marking the first monthly decline in 2026.

• Dairy: Fell by 0,5%, driven down by international butter prices.

• Meat: Registered a marginal increase of 0,1%