PARIS, June 2 Reuters The United Nations food agency39;s world price index fell in May to its lowest in two years, as a slump in prices of vegetable oils, cereals and dairy outweighed increases for sugar and meat.

The Food and Agriculture Organization39;s FAO price index, which tracks the most globallytraded food commodities, averaged 124.3 points in May against a revised 127.7 for the previous month, the agency said on Friday. The April reading was originally given as 127.2.

The May score marked the lowest since April 2021 and meant the index was now 22 below an alltime peak reached in March 2022 following the start of Russia39;s invasion of Ukraine.

FAO39;s cereal price index dropped by nearly 5 in May from the prior month, pressured by ample supply prospects and the extension of the Black Sea Grain Initiative allowing shipments from Ukraine.

But international rice prices continued to increase in May, partly due to tighter supplies in some exporting countries, said FAO. The agency last month expressed concern over rising prices of the staple.

FAO39;s vegetable oil price index slid almost 9 month on month, reflecting large oilseed supplies and weak demand for palm oil, while global dairy prices eased over 3 amid a seasonal upturn in northern hemisphere milk output, the agency said.

Sugar prices, in contrast, showed a 5.5 increase from April in a fourth straight monthly gain, as concerns over the El Nino weather pattern added to global supply risks, FAO said….