After seven months of decline, the FAO Food Price Index jumped in March, driven mainly by higher world vegetable oil prices

The FAO Food Price Index stood 1.1% above its revised February level in March 2024, as increases in the price indices for vegetable oils, dairy products and meat largely offset declines in the sugar and cereal price indices. Although the index rebounded in March after a seven-month downward trend, it was 9.9 points (7.7%) below its value a year earlier.

Specifically, the cereal price index was 2.6% lower than in February and 20% below the March 2023 level. World wheat export prices fell in March for the third consecutive month, while maize export prices edged up slightly on the previous month. Among other coarse grains, world barley prices fell in March. The FAO All Rice Price Index declined 1.7% in March, mainly because of weak global import demand.

The price index for vegetable oils averaged 130.6 points in March, up 8% on February and the highest value in a year. The sharp rebound was due to higher palm, soy, sunflower and rapeseed oil quotations. Rising crude oil prices also contributed to the increase in vegetable oil quotations. 

The price index for dairy products rose 2.9% from February, the second consecutive monthly increase, but remained 8.2% below the value recorded in the same month last year. World cheese prices rose the most in March, while international butter prices continued to climb, mainly because of solid seasonal demand and some reduction in European stocks. By contrast, after five consecutive months of increases, international whole milk powder prices fell. Skimmed milk powder prices also declined.

As for the meat price index averaged 1.7% higher than in February, the second consecutive monthly increase. At this level the index stood just 1.5% below its value a year earlier. International poultry meat prices rose in March, as did pig meat prices, mainly because of higher domestic demand ahead of the Easter holidays. World bovine meat prices continued to rise in March, largely due to increased purchases by the main importing countries. By contrast, international ovine meat prices fell for the second consecutive month.

Finally, the price index for sugar averaged 5.4% lower in March than in February, after two consecutive months of increases, but is still 4.8% above its value a year earlier.

FAO Food Price Index | Food and Agriculture Organization of the United Nations