Global food price index remains stable in March

Rising vegetable oil quotations offset lower prices for wheat, maize, rice and sugar, says FAO

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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 Organisation of the United Nations (FAO) reported recently.

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% higher than its corresponding level one year ago but remaining 20.7% below its March 2022 peak.

The FAO Cereal Price Index declined by 2.6% in March and was down 1.1% 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% amid weak import demand and ample exportable supplies.

By contrast, the FAO Vegetable Oil Price Index increased by 3.7% from February to average 23.9% 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% on the month and 2.7% on the year, primarily due to higher pig meat prices in Europe after Germany regained footand-mouth-diseasefree status and the strengthening of the euro against the US 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.