FAO Reports World Cereal Prices Reach 19-Month High Due to Fuel and Fertiliser Costs
The Food and Agriculture Organization of the United Nations (FAO) has reported that average world cereal prices rose in May to a 19-month high. This increase is attributed to cost pressures in fuel and fertiliser, exacerbated by the blockade of the Strait of Hormuz. The blockade has been in place since the US-Israel conflict with Iran began in late February, affecting around 40% of the world's fertiliser supply from the Middle East. The FAO's monthly report, which tracks five key commodities, highlights the risks to global food prices from a potential reduction in fertiliser use. The FAO food index, which includes cereals, meat, dairy, oils, and sugar, dipped slightly by 0.2% in May but was still 2.9% higher than the previous year. The cereals index specifically climbed 2.6% month-on-month and was up 5% from a year earlier, reflecting higher prices across all major cereals due to increased fuel and fertiliser costs globally and weather-related pressures. 
