World Food Commodity Prices Edge Higher in April

World food commodity prices moved slightly higher in April compared to a month earlier, with rising cereal values helping to drive the increase. 

The Food and Agriculture Organization (FAO) of the United Nations last week reported its food price index - which tracks monthly changes in the international prices of a set of globally traded food commodities - averaged 128.3 points in April, up 1% from March and 7.6% above the same month last year. 

The index was little changed in March following a 1.6% increase in February. The last decline was in January, when the index slipped 1.6% from December. 

With global wheat prices ticking higher amid tightening exportable supplies in Russia, the FAO’s cereal price index increased 1.2% in April. Higher corn prices also contributed to the rise in the cereal price index, due to seasonally tighter stock levels in the US. Currency fluctuations also influenced cereal price movements in world markets, “while tariff policy adjustments raised market uncertainty,” the FAO said. 

On the other hand, the vegetable oil price index declined by 2.3% in April, although it remained 20.7% higher than its year-ago level. Palm oil prices “fell markedly” due to seasonally higher outputs in major Southeast Asian producing countries, while global soy and rapeseed oil prices rose on the back of strong global import demand. Sunflower oil prices remained largely stable. 

The meat price index climbed 3.2% in April, led by higher pork values. Beef prices also firmed, particularly in Australia and Brazil, amid steady global import demand and limited export availabilities. The dairy index moved higher in April as well, rising 2.4% from the previous month to stand nearly 23% higher year-over-year. 

Largely due to concerns over the uncertain global economic outlook and its potential impact on the demand from the beverage and food processing sectors, the FAO sugar price index fell 3.5% in April versus March. 

The FAO food price index reached its all-time high of 160.2 points in March 2022 in the aftermath of the Russian invasion of Ukraine.