Rising international quotations for vegetable oils, dairy products and meat pushed the benchmark index for world food commodity prices up by 1.1 per cent in March, its first increase in seven months, the Food and Agriculture Organization of the United Nations (FAO) reported Friday.

The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 118.3 points in March, down 7.7 per cent from its corresponding value one year ago.

International palm oil prices increased due to seasonally lower outputs in leading producing countries and firm domestic demand in Southeast Asia, while those for soyoil recovered from multi-year lows, boosted by robust demand from the biofuel sector, particularly in Brazil and the United States of America.

The FAO Dairy Price Index increased for the sixth consecutive month, up 2.9 per cent from February, led by rising world cheese and butter prices.

The FAO Meat Price Index also increased, rising 1.7 per cent from the previous month, with international prices up for poultry, pig and bovine meats.

By contrast, the FAO Cereal price Index declined by 2.6 per cent, averaging 20 per cent below its March 2023 value.

The drop was led by decreasing global wheat export prices, which declined due to ongoing strong export competition – underscored by cancelled purchases by China – among the European Union, the Russian Federation and the United States of America.

Maize export prices edged upwards in March, partly due to logistical difficulties in Ukraine, while the FAO All Rice Price Index dipped by 1.7 per cent amid subdued global import demand.

The FAO Sugar Price Index declined by 5.4 per cent from February, with the drop mainly driven by an upward revision to the 2023/24 sugar production forecast in India and the improved pace of the harvest in Thailand.

FAO also released a new Cereal Supply and Demand Brief on Friday, raising its forecast for world cereal production in 2023/24 to 2 841 million tonnes, reflecting expectations of greater outputs of maize, rice and wheat.

Global cereal utilization in 2023/24 is pegged at 2 828 million tonnes, a 1.3 per cent increase from the 2022/23 level. World cereal stocks are forecast to end the 2024 seasons at 894 million tonnes, a 2.3 percent increase from the outset of the year, pointing to a worldwide cereal stocks-to-use ratio of 31.0 per cent.

World trade in cereals is forecast to rise 1.7 per cent from the previous year to 485 million tonnes in 2023/24.

International trade in coarse grains is expected to expand from 2022/23, while wheat and rice trade will likely contract.

FAO also adjusted its forecast for global wheat production in 2024, now standing at 796 million tonnes, marking a 1.0 per cent increase from 2023.

bd-pratidin/GR