The benchmark measure of world food commodity prices increased in April, driven by higher quotations for major cereals, meat and dairy products, the Food and Agriculture Organisation of the United Nations (FAO) reported on Friday.
The FAO 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 1.0 percent from March and 7.6 percent from the same month last year.
The FAO Cereal Price Index increased by 1.2 percent from March. Global wheat prices edged up slightly, supported by tightening exportable supplies in the Russian Federation, while the FAO All Rice Price Index rose on stronger demand for fragrant varieties. International maize prices rose due to seasonally tighter stock levels in the United States of America. Currency fluctuations influenced price movements in world markets, while tariff policy adjustments raised market uncertainty.
The FAO Meat Price Index was up 3.2 percent in April compared to March, with quotations rising across all meat categories, led by those for pig meat. Bovine meat prices also firmed, particularly in Australia and Brazil, amid steady global import demand and limited export availabilities.
The FAO Dairy Price Index increased by 2.4 percent in April from the previous month to stand as much as 22.9 percent higher than a year earlier. The rise was led by international butter prices, which hit a new all-time high due to declining inventories in Europe.
By contrast, the FAO Vegetable Oil Price Index declined by 2.3 percent, though it remained 20.7 percent 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 FAO Sugar Price Index also dropped by 3.5 percent from March, largely due to concerns over the uncertain global economic outlook and its potential impact on the demand from the beverage and food processing sectors, which together account for the bulk of global sugar consumption.
Source: Access Agric
