The FAO Food Price Index averaged 166.8 points in May, down 1.4 percent from April and as much as 20.7 percent from a year earlier. FAO also upgraded its May 2015 forecast for global production of wheat, coarse grains and rice.
International prices for agricultural commodities continued to decline in April and "exceptionally high" inventories are poised to offset any pressure from the slight reduction in global harvests expected this year, according to FAO’s biannual Food Outlook. FAO’s Food Price Index declined 1.2 percent in April from March, 19.2 percent less than a year ago.
The fall is mostly due to the impact of erratic weather conditions, including the late start of seasonal rains in November/December, followed by heavy rains that caused flooding in parts of some countries, and then a long dry spell in the southern areas of the subregion during February and early March.