The global benchmark for food commodity prices witnessed an upward trend in April, and this driven by increases in meat prices, vegetable oils, and cereals, according to the Food and Agriculture Organization of the United Nations.
The FAO Food Price Index, which monitors monthly shifts in the international prices of key globally traded food items, averaged 119.1 points in April. This marked a 0.3% rise from the revised March figures but reflected a significant 9.6% decrease from the previous year.
Grains
The FAO Cereal Price Index saw a 0.3% increase from March, ending a three-month decline trend. Global wheat export prices remained stable in April despite concerns over adverse crop conditions in parts of the European Union, the Russian Federation, and the United States. Maize export prices rose due to high demand amidst logistical disruptions in Ukraine and concerns about Brazilian production. However, the FAO All-Rice Price Index fell by 1.8%, driven by drops in Indica quotations.
Vegetable Oil and Meat
The FAO Vegetable Oil Price Index rose by 0.3% from March, reaching a 13-month peak, driven by increased quotes for sunflower and rapeseed oil. The FAO Meat Price Index climbed by 1.6% compared to the previous month, with international prices for poultry, bovine, and ovine meat experiencing upticks. However, global pork prices saw a slight decline due to sluggish demand in Western Europe and major importers like China.
Sugar and Dairy Products
The FAO Sugar Price Index dropped by 4.4% from March, attributed to improved global supply prospects driven by larger-than-expected outputs in India and Thailand, as well as favorable weather conditions in Brazil. The FAO Dairy Price Index saw a marginal decrease of 0.3%, ending a six-month streak of increases, influenced by sluggish spot import demand for skim milk powder and lower world cheese prices.
The FAO Food Price Index reflected a complex interplay of factors influencing global food markets, with some commodities experiencing increases while others saw declines in April.
