World food commodity prices rose for a third consecutive month in April, as elevated energy costs and disruptions tied to the U.S.-Iran conflict continued to ripple through global grain, oilseed and food markets, said the Food and Agriculture Organization (FAO) of the United Nations on Friday.
The FAO Food Price Index – which tracks monthly changes in the international prices of a basket of globally traded food commodities – averaged 130.7 points in April, up 1.6% from March and 2% above year-earlier levels. However, the index remains below its high of 159.3 points in March 2022, following the Russian invasion of Ukraine.
“Despite the disruptions linked to the crisis in the Strait of Hormuz, global agrifood systems continue to show resilience,” said FAO Chief Economist Máximo Torero. “Cereal prices have increased only moderately so far, supported by relatively strong stocks and adequate supplies from previous seasons. Vegetable oils, however, are experiencing stronger price increases, driven largely by higher oil prices, which are increasing demand for biofuels and putting additional pressure on vegetable oil markets.”
Vegetable oils posted the strongest increase among the major food categories in April. The FAO vegetable oil price index jumped 5.9% from March to its highest level since July 2022, reflecting higher palm, soy, sunflower and rapeseed oil prices. Palm oil rose for a fifth straight month, supported by stronger expected biofuel demand, policy incentives in producing countries and higher crude oil prices. Concerns about lower Southeast Asian production in the months ahead added to the upward pressure.
The FAO cereal price index rose 0.8% in April and was 0.4% higher than a year earlier, with gains across most major cereals. Wheat prices increased 0.8%, supported by drought concerns in parts of the U.S., the risk of below-average rainfall in Australia and expectations of reduced wheat plantings in 2026. High fertilizer prices, driven by elevated energy costs and disruptions linked to the effective closure of the Strait of Hormuz, are expected to push some farmers toward less fertilizer-intensive crops, the FAO said.
Corn prices rose 0.7%, underpinned by seasonally tighter supplies, weather concerns in Brazil and dry planting conditions in parts of the U.S. Firm ethanol demand, supported by elevated crude oil prices, added further strength. Rice prices advanced more sharply, with the FAO All Rice Price Index up 1.9% as higher fuel and derivative costs lifted production and marketing costs in exporting countries. Sorghum was an exception, falling 4% on weaker global import demand and improved supply prospects.
The FAO meat price index rose 1.2% from March to a record high, led by stronger beef prices in Brazil and firmer pork values in the European Union.
The dairy price index declined 1.1% on lower butter and cheese prices, while the sugar price index fell 4.7% on expectations for ample global supplies.
