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 Organization of the United Nations (FAO) has reported today, Friday, May 2.
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% from March and 7.6% from the same month last year.
The FAO Cereal Price Index increased by 1.2% 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 US.
Currency fluctuations influenced price movements in world markets, while tariff policy adjustments raised market uncertainty.
The FAO Meat Price Index was up 3.2% 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% in April from the previous month to stand as much as 22.9% 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%, though 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 FAO Sugar Price Index also dropped by 3.5% 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.
Cereal supply and demand in year ahead
FAO also released a new Cereal Supply and Demand Brief today, with revised estimates for 2024 and fresh insights on cropping conditions and prospects for 2025.
FAO’s latest forecast for 2025 wheat production is pegged at 795 million tonnes, on par with the previous year.
Prospects point to a record output in Asia, buoyed by India and Pakistan, improved conditions in southern Europe and north Africa, along with stable production in Canada and the Russian Federation.
However, rainfall deficits in northern Europe and the near east and drought concerns in the US are weighing on the overall prospects.
Harvesting of the 2025 coarse grain crops is beginning in the southern hemisphere, with maize output expected to increase in Brazil and South Africa.
In the northern hemisphere, early expectations point to a 5% expansion in coarse grain plantings in the US.
Meanwhile, FAO has slightly revised downward its estimate for global cereal production in 2024 to 4.85 billion tonnes, even as global rice output in 2024/2025 will likely expand by 1.5% to reach record high of 543.6 million tonnes.
FAO’s new forecast for world cereal utilisation in 2024/2025 stands at 2.88 billion tonnes, a 1% increase over the 2023/2024 level, driven by expectations of higher feed use of maize in China and the Russian Federation, along with increased rice consumption in various African countries.
World cereal stocks are now predicted to decline by 1.9% to 868.2 million tonnes by the close of the 2025 seasons, driving down FAO’s forecast for the world cereal stocks-to-use ratio in 2024/2025 to 29.9% – still considered to be in a comfortable buffer zone.
FAO has slightly reduced its forecast for world cereal trade in 2024/2025 to 478.6 million tonnes, which would mark a 6.8% contraction from 2023/2024 and the lowest level since 2019/2020.
Global trade in coarse grains is forecast to contract even faster, due largely to lower demand from China and smaller exportable maize supplies in Brazil.
International trade in rice is now seen increasing by 1.2% to a new record high of 60.4 million tonnes.
