FAO Food Price Index edges higher for third consecutive month
10 May 2016
The Food and Agriculture Organisation of the United Nations (FAO) Food Price Index* averaged 151.8 points in April 2016 – up 1.1 points (0.7%) from the previous month, but remained almost 10% below the same time last year.
A considerable lift in international vegetable oil prices, along with a rise in cereal quotations, more than offset the declines registered across dairy and sugar for the month.
Higher vegetable oil prices were largely driven by palm oil, which increased due to a lower production outlook and stronger global demand. The rise in cereal prices was attributed mostly to maize, influenced by the weaker US$.
The FAO Dairy Price Index continued to be pushed downwards by high global supplies and subdued interest from traditional import markets.
The FAO Meat Price Index averaged 146.6 points in April – up 1.2 points (0.8%) from March, but still 24.2 points lower than the corresponding month last year. Compared to the previous month, international prices for pork and poultry were mostly steady, while sheepmeat prices moved upwards. FAO report that cattle quotations increased to a greater extent, due to tighter supplies and higher import demand from the US.
*The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of five commodity group price indices, weighted with the average export shares of each of the groups for 2002-2004 (Food and Agriculture Organisation of the United Nations).
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