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Informist, Friday, Apr. 4, 2025

 

MUMBAI – The UN Food and Agriculture Organization's Food Price Index remained nearly unchanged at 127.1 points in March as declines in cereals and sugar price indices offset increases in those of meat and vegetable oils. The index was 6.9% higher than a year ago in March, but 20.7?low its peak of 160.2 points touched in March 2022, the organisation said in a report.

 

The sugar price index averaged 116.9 points in March, down 1.4% from February and 12.3% from a year ago. The decline was mainly driven by signs of weaker global demand, which has alleviated concerns over tight global sugar supplies. Additionally, recent rainfall in key sugarcane-growing areas of southern Brazil, following a period of prolonged dry weather, further contributed to the decline in world sugar prices. 

 

However, deteriorating production prospects in India and persisting concerns about the overall outlook for the sugarcane crop in Brazil continued to exert upward pressure on prices, limiting the monthly decline in March., the report said.

 

The vegetable oil price Index rose 3.7% on month and 23.9% on year to 161.8 points in March. The continued increase in the index was driven by higher prices of palm, soy, rapeseed and sunflower oils. International palm oil prices rose for the second consecutive month, primarily due to persistently tight supplies in major producing countries in Southeast Asia, where outputs were at their seasonal lows. 

 

Meanwhile, world soyoil quotations increased, supported by robust global import demand due to its price competitiveness relative to other oils, despite subdued demand from the biofuel sector, particularly in the US. International rapeseed and sunflower oil prices also increased from February, reflecting dwindling supplies from major exporters coinciding with a firm global import demand, the report said.

 

The meat price index was at 118.0 points in March, up 0.9% on month and 2.7% on year, driven by higher pig meat prices, mainly due to rising quotations in the European Union after Germany regained foot-and-mouth-disease-free status, prompting key trading partners, such as the United Kingdom to lift import bans. Rising demand contributed to stabilising the market, while the strengthening of the euro against the US dollar supported the upward trend. Ovine meat prices also increased, supported by strong global demand ahead of the Easter holidays. Similarly, world bovine meat quotations rose, reflecting tight global supplies and robust international demand. 

 

Poultry meat prices remained largely stable, as global supply and demand remained balanced despite the continued challenges posed by widespread avian influenza outbreaks in some major producing countries, the report said.

 

The cereal price index averaged 109.7 points in March, down 2.6% on month and 1.1% on year. Global wheat prices declined in March as concerns over crop conditions subsided in some major Northern Hemisphere exporters, while uncertainty over rising trade tensions weighed on market sentiment. However, the decline was moderated by currency movements, tighter supply pressure in the Russian Federation, and Turkiye's removal of its wheat import quota. 

 

Following several consecutive monthly increases, world maize prices also declined in March, driven by improved crop conditions in Brazil with recent rainfall, the start of the harvest in Argentina, bearish projections for the coming season in the US, weaker-than-anticipated import demand from China, and concerns over trade policy changes in various countries, it said.

 

Among other coarse grains, world sorghum prices declined, while barley prices increased slightly. The FAO rice price index declined by 1.7% in March, as weak import demand and ample exportable supplies kept export quotations under downward pressure.

 

The dairy price index was unchanged on month at 148.7 points in March, the organisation said in its monthly report. The stability of the index reflects a decline in international cheese prices offset by increases in butter and milk powder quotations. On a year-on-year basis, the index was up 19.9%. International butter prices increased for the third consecutive month, driven by strong retail sales and growing international demand amid seasonally declining supplies in Oceania and sluggish production in Europe. 

 

Skim milk powder prices increased for the second consecutive month, supported by a combination of strong international demand and tightening supplies. International quotations for whole milk powder also rose slightly, as mixed export demand in Europe — affected by the presence of foot and mouth disease in some European countries — was largely balanced by weaker global purchasing activity from Oceania amid seasonally declining milk production, FAO said. 

 

International cheese prices decreased after nine months of consecutive increases, driven by stable supply in Europe alongside weakening international and domestic demand in Oceania, the report said.  End

 

Reported by Taniva Singha Roy

Edited by Saji George Titus

 

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