Global Food Commodity Prices Climb in April Due to Rising Meat Prices and Increases in Vegetable Oils and Cereals
According to the Food and Agriculture Organization (FAO), the Food Price Index (FPI) recorded a rise in global food commodity prices in April, mainly driven by higher meat prices and modest upticks in vegetable oils and cereals. The FPI, which monitors monthly changes in international food commodity prices, reached 119.1 points in April, a 0.3% increase from the revised March level but a 9.6% decrease compared to the previous year.
The FAO Cereal Price Index increased by 0.3% in April, halting a three-month decline. Global wheat export prices stabilized due to strong competition among major exporters, offsetting concerns about unfavorable crop conditions in parts of the European Union, the Russian Federation, and the United States. The rise in maize export prices was attributed to high demand, while the All-Rice Price Index fell by 1.8%, primarily due to declines in Indica quotations influenced by harvest pressure.
Sunflower and rapeseed oil prices increased, leading to a 0.3% rise in the FAO Meat Price Index in April. International poultry, bovine, and ovine meat prices all rose, while world pig meat prices fell slightly. The Sugar Price Index declined by 4.4% from March, standing 14.7% below its April 2023 level, mainly due to improved global supply prospects and increased outputs in India and Thailand. The Dairy Price Index fell by 0.3%, ending six consecutive months of increases. World butter prices, however, increased due to steady import demand.
The FAO forecasts a 1.2% increase in world total cereal production for 2023, reaching 2,846 million tonnes, a slight revision primarily based on new information from Myanmar and Pakistan.
