In April, the global benchmark for food commodity prices ticked upwards, as declines in sugar and dairy products were outweighed by increase in meat prices, vegetable oils and cereals according to the Food and Agriculture Organization of the United Nations (FAO).
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, marking a 0.3% rise from the revised March figures, yet a 9.6% decrease from the previous year.
The FAO Cereal Price Index saw a 0.3% increase from March, breaking a three-month decline trend. Global wheat export prices remained steady in April due to intense competition among major exporters, despite concerns over adverse crop conditions in parts of the European Union, the Russian Federation, and the United States.
Maize export prices rose, reflecting high demand amidst growing logistical disruptions caused by infrastructure damage in Ukraine and apprehensions about Brazilian production ahead of the main harvest. The FAO All-Rice Price Index fell by 1.8%, primarily due to drops in Indica quotations driven by harvest pressures.
The FAO Vegetable Oil Price Index also saw a 0.3% rise from March, hitting a 13-month peak, driven by increased quotes for sunflower and rapeseed oil, which outweighed slightly lower prices for palm and soy oil.
In April, the FAO Meat Price Index climbed by 1.6% compared to the previous month, with international prices for poultry, bovine, and ovinemeat all experiencing upticks. However, global pork prices saw a slight decline, reflecting sluggish domestic demand in Western Europe and continued weak demand from major importers, notably China.
The FAO Sugar Price Index dropped by 4.4% from March, standing 14.7% lower than its level in April 2023. This decline was largely attributed to improved global supply prospects, driven by larger-than-expected outputs in India and Thailand, as well as favorable weather conditions in Brazil.
Meanwhile, the FAO Dairy Price Index saw a marginal decrease of 0.3% ending a six-month streak of increases. This decline was influenced by sluggish spot import demand for skim milk powder and lower world cheese prices, impacted by the strengthening of the United States dollar. However, world butter prices increased amid steady import demand.