Global food prices rose 10 percent in May 2017 compared to May 2016, and 2.2 percent from April 2017, according to the UN Food and Agriculture Organization, which gauged the international prices of a basket of food commodities. Rising shipping costs and larger import volumes are expected to push the total cost of global food imports to more than $1.3 trillion for 2017. Vegetable oils, dairy products, and meats increased in price, while sugar and cereals dropped.
Sugar prices were impacted by higher-than-expected sugar output in Brazil, combined with a weakening of the Brazilian Real, which discouraged crush for ethanol in the domestic market in favor of more lucrative sugar exports. Expectations of larger exports from Pakistan and China’s decision to impose high duties on imports beyond its WTO tariff-rate quota commitment exerted additional downward pressure on international sugar prices.
Source: Specialty Food Association