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IOL News
09-05-2025
- Business
- IOL News
FAO food price index rises slightly amid mixed commodity outlook
The Food and Agriculture Organization of the United Nations (FAO) Index for April 2025 released last week, which tracks monthly changes in the international prices of a set of globally traded food commodities, averaged 128.3 points in April, up 1.0 percent from March and 7.6 percent from the same month last year Image: Supplied The Food and Agriculture Organization of the United Nations (FAO) has reported a modest increase in its food price index, highlighting ongoing fluctuations in global commodity markets as supply and demand dynamics play a pivotal role in shaping consumer costs. In its latest release, the FAO Index for April 2025 averaged 128.3 points, marking a 1.0% rise from March and a significant 7.6% leap from the same month last year. Key contributors to this uptick included commodities like wheat, maize, meat, and dairy products. The FAO's Cereal Price Index climbed by 1.2% from March, with global wheat prices experiencing a slight boost attributed to reduced exportable supplies in the Russian Federation. Additionally, heightened demand for aromatic rice types contributed to an increase in the FAO All Rice Price Index, signalling robust consumer interest. Furthermore, seasonally tighter stock levels in the United States pushed international maize prices higher, exacerbated by recent adjustments to the US import tariff policies. With exemptions for Mexico, the largest importer of US maize, and a temporary pause on tariffs above 10% for certain trading partners, market dynamics remained precarious. The FAO Meat Price Index also saw a notable increase of 3.2% compared to March. The rise was informed by consistent international demand amid limited supply, particularly for pig meat and bovine varieties, which firmed notably in markets like Australia and Brazil. The Dairy Price Index surged by 2.4% over the previous month, further reflecting a staggering 22.9% increase since last year. However, this was tempered by the FAO Vegetable Oil Price Index, which declined by 2.3%, although it remains 20.7% higher than its year-ago level. Surges in palm oil outputs from Southeast Asian producers allowed for markdowns, while prices for soy and rapeseed oils climbed due to solid global demand. Conversely, the Sugar Price Index experienced a 3.5% decrease since March, a move largely driven by increasing concerns over the uncertain global economic landscape, which could affect sugar consumption in both the beverage and food processing sectors. Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa, said that the index was up 8% from the same period last year but still 20% down from its peak in March 2022, a month after Russia invaded Ukraine, leading to a surge in grains and oilseeds prices. Sihlobo said the mild uptick in the prices of grains, dairy, and meat had underpinned the index's mild increase in recent months. 'In the case of dairy and meat prices, there is a rise in demand, particularly in the EU area, combined with tight supplies in some places that have struggled with animal diseases. These will likely be temporary and generally mild as the supplies recover in the coming months,' he said. Sihlobo said that in the case of grains, the price increases reflect the tighter supplies in the Black Sea region. 'But this, too, may be short-lived as the general production outlook is optimistic. For example, the International Grains Council forecasts the 2025-26 global grain production to be 2.4 billion tons, up 4% from the previous year. This forecast comprises all major global soft commodities – maize, wheat, rice, and soybeans.' Sihlobo added that a closer look at the data shows that the 2025-26 global maize production is forecast at 1.3 billion tons, up 8% year-on-year. 'The uptick is expected to be in all major maize-producing regions worldwide. The 2025-26 global wheat crop is forecast at 805 million tons, up 1% from the previous season. The 2025-26 global rice production is estimated at 540 million tons, up 1% from the prior season,' he said. 'The 2025-26 global soybean crop is estimated at 428 million tonnes, up 3% from the previous season. This is an encouraging outlook for South Africa's consumer. South Africa generally imports around 1.8 million tons of wheat yearly, just under half of the country's annual consumption.' BUSINESS REPORT
Al Etihad
02-05-2025
- Business
- Al Etihad
FAO Food Price Index increases in April, with world cereal, meat and dairy prices up
2 May 2025 17:28 ABU DHABI (ALETIHAD) 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) reported on 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 1.0 percent from March and 7.6 percent from the same month last FAO Cereal Price Index increased by 1.2 percent 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 FAO Meat Price Index was up 3.2 percent in April compared to March, with quotations rising across all meat FAO Dairy Price Index increased by 2.4 percent in April from the previous month to stand as much as 22.9 percent 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 contrast, the FAO Vegetable Oil Price Index declined by 2.3 percent, though it remained 20.7 percent 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 percent 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.
Agriland
02-05-2025
- Business
- Agriland
FAO: Meat Price Index up 3.2% in March
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.
