The benchmark of world food commodity prices rose for a third consecutive month in April amid elevated energy costs and disruptions caused by the conflict in the Middle East.

The Food and Agriculture Organization of the United Nations (FAO) attributed the increase largely to rising vegetable oil prices.

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.

This is up 1.6% from its revised March level and 2% higher than a year ago.

Food

FAO chief economist Máximo Torero said that global agri-food systems continue to show resilience, despite the disruptions linked to the crisis in the Strait of Hormuz.

"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," he said.

The FAO Cereal Price Index rose by 0.8% from March and was up 0.4% from a year ago, reflecting higher prices across major cereals, except sorghum and barley.

World wheat prices increased by 0.8%, due to concerns over drought in parts of the US and a higher likelihood of below-average rainfall in Australia.

The increase was also reinforced by expectations of reduced wheat plantings in 2026, with farmers shifting to less fertiliser‑intensive crops.

Fertiliser prices have risen due to elevated energy costs and disruptions associated with the effective closure of the Strait of Hormuz.

Global maize prices increased by 0.7%, underpinned by seasonally tighter supplies and weather-related concerns in Brazil, as well as dry conditions affecting sowing in parts of the US.

Upward pressure alsocame from firm ethanol demand amid elevated crude oil prices and ongoing concerns over fertiliser affordability.

Food

The FAO Vegetable Oil Price Index increased by 5.9% from March, reaching its highest level since July 2022.

The rise was driven by higher prices of palm, soy, sunflower and rapeseed oils.

International palm oil prices rose for the fifth consecutive month in April, largely underpinned by prospective stronger demand from the biofuel sector.

The FAO Meat Price Index reached a new record high in April, rising by 1.2% from March and 6.4% from a year ago.

The FAO said world bovine meat prices climbed to a new peak, underpinned by higher export quotations in Brazil amid limited supplies of slaughter-ready cattle, reflecting ongoing herd rebuilding.

Pig meat prices also rose, driven by firmer quotations in the European Union with rising seasonal demand, but were partly offset by lower prices in Brazil due to ample supplies.

The FAO Dairy Price Index declined by 1.1% from March, mainly reflecting lower international quotations for butter and cheese amid abundant milk supplies in the EU and stronger-than-expected late-season output in Oceania.

The FAO Sugar Price Index also dropped, down 4.7% from March and as much as 21.2% from a year ago.

The decrease was largely driven by expectations of ample global supplies in the current season.

Cereal markets

The FAO also raised its 2025 production forecast for most major cereals.

Global cereal production is now forecast at 3,040 million tonnes, representing an increase of 6% compared to the previous year.

For the 2026 crops, FAO’s latest forecast for world wheat production has been revised slightly down this month and now stands at 817 million tonnes.

The FAO noted that the outlook continues to face uncertainty amid due to the impact of the ongoing war in the Middle East.