World Food Markets Likely to Remain Stable

The United Nations says global food commodity markets are likely to remain stable, even as prices rose for the fourth straight month.  The UN’s Food and Agriculture Organization’s monthly food price report rose 2.1% in May to average 155.8 points. Rising prices for most main food commodities apart from vegetable oils resulted in the index’s fourth consecutive monthly rise after it hit a near seven-year low in January, according to Reuters.  The FAO said solid output prospects and abundant stocks should keep prices and supplies stable, while lower prices than those seen last year are set to reduce the world’s food import bill.

Meanwhile, dairy prices rose 0.4% in May partly due to continued demand for milk powder and butter, but are still down 24% since last year and expected to stay weak, according to the monthly index.