Rome, May 2 (EFE) .- The world’s price index increased by 1 % in April compared to March promoted by the increase in cereals, meat and dairy products, the United Nations Organization for Food and Agriculture (FAO) reported Friday.
The FAO indicator, which follows monthly changes in international prices of a set of food products, averaged 128.3 points in April, 1 % percent more than in March and 7.6 % more than in the same month of 2024.
The price of dairy products recorded a 2.4 % rise in April and was 22.9 % above the level of a year ago, an increase led by butter prices, which reached a new historical record due to the decrease in inventories in Europe.
The meat also showed an increase of 3.2 %, with increases in all categories, headed by pork.
As for cereals, the rise was 1.2 % compared to the previous month, with a “slight” increase in wheat due to lower export availability from Russia, an increase in the price of rice due to a greater demand for aromatic and corn varieties due to more adjusted stock levels in the United States.
“Exchange fluctuations influenced price movements in world markets, while adjustments in tariff policy increased market uncertainty,” explained in the statement published by FAO.
On the contrary, the price index of vegetable oils fell 2.3 % in April, although 20.7 % is maintained above the level of the same month of the previous year.
Palm oil prices fell markedly due to greater seasonal production in Southeast Asia, while those of soybean oil and rapes increased due to a strong world demand, and that of sunflower remained stable.
In April, the price of sugar also decreased 3.5 % due to concerns about the global economy and its possible impact on the demand for the processed drinks and foods.
Regarding the forecasts for the supply and demand of cereals, FAO published on Friday the estimates reviewed by 2024 and the new perspectives for the crops of 2025.
The organization foresees a world production of wheat of 795 million tons in 2025, a figure similar to that of the previous year, thanks to a record harvest in Asia – led by India and Pakistan – and favorable conditions in southern Europe and North Africa.
However, perspectives are limited by the lack of rains in northern Europe and the Middle East, in addition to drought in the United States.
In addition, FAO reduced its world production estimate of cereals in 2024 to 4,848 million tons, while anticipating a 1.5 % increase in global rice production in 2024/25, which would reach a record of 543.6 million tons.
The worldwide cereal trade forecast was also checked in 2024/25, which would be at 478.6 million tons, which would represent a 6.8 % drop compared to the previous period and the lowest level since 2019/20. EFE
