FAO data shows cereal prices jumped 2.6% in May due to fuel and fertiliser cost spikes linked to Middle East supply disruptions.
World cereal prices reached a 19-month high in May, driven by rising fuel and fertiliser costs tied to the Strait of Hormuz blockade. The FAO’s cereals index climbed 2.6% month-on-month to 114.3, the highest since October 2024, as supply chain disruptions in the Middle East tightened input markets.
The broader FAO food price index edged down 0.2% from April but remained 2.9% above May 2025 levels. Cereal prices were up 5% year-on-year, reflecting weather-related pressures and higher energy costs, the agency noted. About 40% of global fertiliser supplies originate from the Middle East, where shipping routes remain restricted.
The FAO warned of potential further price volatility if fertiliser use declines, though food commodity markets have shown resilience so far. The cereals index’s rise contrasts with modest declines in other food categories like dairy and oils.