The FAO Food Price Index (FFPI) recorded a modest rise in April 2024, reaching 119.1 points, a 0.3-point (0.3 percent) increase from its revised March level. This marks the second consecutive monthly increase following a seven-month decline. However, the FFPI remains 9.6 points (7.4 percent) lower than its value in April 2023. The April uptick was driven by increases in the meat, vegetable oil, and cereal price indices, which outweighed decreases in the sugar and dairy price indices.

Cereal Prices: Stabilization and Divergent Trends

The FAO Cereal Price Index averaged 111.2 points in April, a slight rise of 0.3 points (0.3 percent) from March, yet it stands 25 points (18.3 percent) below its April 2023 level. Wheat export prices, which had been declining for three months, stabilized in April. This stability resulted from a balance between upward pressure due to concerns about poor crop conditions in the EU, Russia, and the USA, and strong competition among major exporters.

Maize export prices, however, rose in April, influenced by high import demand and logistical disruptions caused by infrastructure damage in Ukraine and reduced production prospects in Brazil ahead of the main harvest. Prices for barley also increased, while sorghum prices declined. The FAO All Rice Price Index dropped by 1.8 percent, mainly due to lower Indica quotations amid harvest pressure.

Vegetable Oil Prices: Marginal Increase Amid Mixed Influences

The FAO Vegetable Oil Price Index rose marginally to 130.9 points in April, marking a 13-month high with a 0.3-point (0.3 percent) increase from March. The rise in sunflower and rapeseed oil prices offset slight declines in palm and soyoil prices. International palm oil prices fell due to seasonally higher outputs in leading producers and subdued global import demand. Soyoil prices also declined, reflecting ample supply prospects from South America. In contrast, sunflower and rapeseed oil prices continued to rise, driven by strong global import demand and concerns over adverse weather conditions in Europe.

Dairy Prices: Slight Decline After Prolonged Increase

The FAO Dairy Price Index averaged 123.7 points in April, a slight decrease of 0.3 points (0.3 percent) from March, ending a six-month rise. Despite this downturn, the index remains 5.5 points (4.3 percent) below its value in April 2023. Skim milk powder prices fell the most due to sluggish spot supply demand amid high exportable availabilities, particularly in Western Europe. Cheese prices also declined slightly, influenced by a stronger US dollar. Conversely, butter prices rose due to steady import demand and tighter inventories in Western Europe, while whole milk powder prices increased moderately amid higher medium-term demand and declining milk production in Oceania.

Meat Prices: Continued Rise Across Most Categories

The FAO Meat Price Index stood at 116.3 points in April, a 1.9-point (1.6 percent) increase from March, marking the third consecutive monthly rise and positioning the index only marginally (0.4 percent) below its April 2023 level. Poultry meat prices increased due to steady import demand from Middle Eastern countries and ongoing production challenges from avian influenza outbreaks. Bovine meat prices also rose, driven by high demand from major importers despite increased supplies from domestic sources in leading importing countries. Ovine meat prices saw a slight rebound due to expected seasonal supply tightening in Oceania, whereas pig meat prices fell slightly amid weak internal demand in Western Europe and continued lackluster demand from China.

Sugar Prices: Continued Decline Amid Improved Supply Prospects

The FAO Sugar Price Index averaged 127.5 points in April, a decrease of 5.9 points (4.4 percent) from March, marking the second consecutive monthly decline and standing 21.9 points (14.7 percent) below its April 2023 level. The decrease was mainly attributed to better global supply prospects, particularly higher-than-expected outputs in India and Thailand. Improved rainfall in Brazil also eased concerns over the new harvest, contributing to the price decline. Additionally, the weakening Brazilian real against the US dollar further lowered sugar prices. However, rising international crude oil and ethanol prices in Brazil limited the overall decrease.

These mixed trends across various food commodities highlight the complex dynamics influencing global food prices and the ongoing challenges in the international food market.