MercoPress. South Atlantic News Agency

FAO March Food Prices, cereals and sugar down, sharp increase in vegetable oils

FAO Vegetable Oil Price Index increased by 3.7% since February, averaging 23.9% above its year-earlier level

The FAO Food Price Index, a benchmark indicator of global food price developments, remained virtually unchanged in March from its revised February reading, as lower global cereal and sugar quotations offset sharp increases in vegetable oil prices.

The index, which tracks monthly international prices for a range of globally traded food commodities, averaged 127.1 points in March, 6.9% above its year-ago level but still 20.7% below its peak reached in March 2022.

The FAO Cereal Price Index declined 2.6 percent in March, 1.1 percent below its March 2024 level. Global wheat prices fell as concerns about crop conditions in some major exporting countries in the Northern Hemisphere eased, although currency fluctuations mitigated the decline. Global maize prices also declined since February, as did sorghum prices. The FAO All Rice Price Index declined 1.7 percent amid weak import demand and abundant exportable supplies.

In contrast the FAO Vegetable Oil Price Index increased by 3.7 percent since February, averaging 23.9 percent above its year-earlier level. Quotations for palm, soybean, rapeseed, and sunflower oils rose, driven by strong global import demand.

The FAO Meat Price Index also rose, up 0.9 percent on the month and 2.7 percent on the year, largely due to higher pork prices in Europe following Germany's return to foot-and-mouth disease-free status and the strengthening of the euro against the US dollar. World poultry meat prices remained broadly stable in March, despite continued challenges caused by widespread avian influenza outbreaks in some major producing countries.

The FAO Dairy Price Index remained unchanged since February, as lower international cheese prices were offset by higher prices for butter and milk powder.

The FAO Sugar Price Index fell 1.4 percent in March, driven mainly by signs of weakening global demand. Recent rainfall in key sugarcane-producing areas of southern Brazil further contributed to the decline, while a deteriorating production outlook in India and lingering concerns about the overall crop outlook in Brazil limited the price decline.