UN Food Agency’s World Price Index Rises for Second Consecutive Month
In a recent report, the UN food agency announced that the world price index has increased for the second consecutive month in April. This rise can be attributed to higher meat prices and small increases in vegetable oils and cereals, despite declines in sugar and dairy products.
Price Index Averages 119.1 Points in April
The Food and Agriculture Organization’s price index, which tracks the most globally traded food commodities, averaged 119.1 points in April, up from a revised 118.8 points for March. However, this April reading was still 7.4 percent below the level recorded a year earlier.
Meat Prices Show Strongest Gain
In April, meat prices showed the strongest gain, rising by 1.6 percent from the previous month. The FAO’s cereal index also inched up, ending a three-month decline, supported by stronger export prices for maize. Additionally, vegetable oil prices reached a 13-month high due to strength in sunflower and rapeseed oil.
Sugar Index Drops Sharply
On the other hand, the sugar index dropped sharply, shedding 4.4 percent from March and standing 14.7 percent below its year-earlier level. Dairy prices also edged down, ending a run of six consecutive monthly gains.
FAO Adjusts Estimates for World Cereal Production
The FAO has adjusted its estimate of world cereal production in 2023/24 to 2.846 billion metric tonnes, up from the previous projection. The agency also lowered its forecast for 2024 global wheat output, reflecting a larger drop in wheat planting in the EU than previously expected.
Despite these fluctuations, the revised 2024 wheat output outlook remains about 0.5 percent above the previous year’s level.