993: March 2024 World Food Price Index

On April 5, the Food and Agriculture Organization of the United Nations (FAO) released the World Food Price Index for March 2024. It averaged 118.3 points, up 1.3 points (1.1%) from the previous month, and reflected the rise in vegetable oil prices. Although the increase reversed a seven-month downtrend that had continued through the previous month, it remained 9.9 points (7.7%) lower than the previous year.

The Cereal Price Index was 110.8 in March, down 2.6% from the previous month and 20.0% lower than the previous year. World wheat prices fell for the third consecutive month due to export competition from the EU, Russia, and the United States. Amid oversupply, China's cancellation of orders for wheat from Australia and the U.S. and favorable prospects for the 2024 harvest in Russia and the U.S. put pressure on prices. In contrast, amid logistics problems in Ukraine, maize export prices increased slightly due to demand, particularly from China, though the price increase was not large due to an overlap in harvest seasons in Argentina and Brazil. As for rice, prices fell by about 1.7% in March, partly due to a drop in global import demand.

The Vegetable Oil Price Index rose 8.0% from the previous month, reaching a one-year high. This was due to strong demand for palm oil in Southeast Asia, which coincided with a seasonal decline in supply, as well as a recovery in soybean prices driven by demand from the biofuels sector in the U.S. and Brazil. In addition, higher crude oil prices contributed to higher vegetable oil prices.

Sugar prices fell 5.4% from the previous month, but remained 4.8% higher than a year earlier. As we approach the end of the 2023–24 season, the decline in prices is attributed to improved harvest prospects in India and Thailand and strong exports from Brazil. On the other hand, predictions of a prolonged drought in Brazil and rising oil prices continue to be a cause for concern.

Contributor: IIYAMA Miyuki (Information Program)