FAO Food Price Index remains stable in March
04.04.2025 13:57 "Agro Perspectiva" (Kyiv) —
The FAO Food Price Index, a benchmark of world food commodity price developments, remained largely unchanged in March from its revised February value, as declines in world cereal and sugar quotations offset a notable increase in vegetable oil prices, the Food and Agriculture Organization of the United Nations (FAO) reported on Friday. The index, which tracks monthly changes in the international prices of a set of globally traded food commodities, averaged 127.1 points in March, 6.9 percent higher than its corresponding level one year ago but remaining 20.7 percent below its March 2022 peak. The FAO Cereal Price Index declined by 2.6 percent in March and was down 1.1 percent from March 2024. Global wheat prices dropped as concerns over crop conditions in some major Northern Hemisphere exporters eased, though currency movements tempered the decline. World maize prices also decreased from February, as did those for sorghum. The FAO All-Rice Price Index declined by 1.7 percent amid weak import demand and ample exportable supplies. By contrast, the FAO Vegetable Oil Price Index increased by 3.7 percent from February to average 23.9 percent higher than its year-earlier level. Quotations for palm, soy, rapeseed and sunflower oils all rose, driven by robust global import demand. The FAO Meat Price Index also rose, increasing by 0.9 percent on the month and 2.7 percent on the year, primarily due to higher pig meat prices in Europe after Germany regained foot-and-mouth-disease-free status and the strengthening of the euro against the United States dollar. World poultry meat prices remained largely stable in March, despite the continued challenges posed by widespread avian influenza outbreaks in some major producing countries. The FAO Dairy Price Index was unchanged from February, with lower international cheese prices offset by higher quotations for butter and milk powders. The FAO Sugar Price Index dropped by 1.6 percent in March, mainly driven by signs of weaker global demand. Recent rainfall in key sugarcane growing areas of southern Brazil further contributed to the decline, while deteriorating production prospects in India and continuing concerns about the overall outlook for the crop in Brazil limited the price decline.
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