Adjusted for inflation, FAO’s Food Price Index (FPI) for April rose 0.6 percent from March—the first monthly increase in 13 months. The sugar and meat subindexes were the cause of this monthly increase. April’s FPI was still down 21.1 percent YOY.

For the year to date, food prices are still down 10.9 percent YOY; sugar is the only subindex showing a YTD increase, up just 0.3 percent from the previous year.

The cereals index was down in April for a sixth straight month. Demand was softer for multiple grains. Rice was the exception, with higher prices and buying.

Vegetable oil prices were down for a fifth month on flat prices for palm oil and weaker ones for soybean, canola, and sunflower.

Meat prices rose in April as a result of high pork production costs and other issues in Asia, supporting regional imports. Poultry prices also rose in the region, after nine months of declines, while declining herd numbers in N. America supported beef prices. Dairy pricing fell due to continued weakness for powder and cheese, though butter was flat.

The full version of this commentary appeared on our IQ platform May 11, 2023. Further information concerning food pricing is available to IQ subscribers. Learn more about becoming a subscriber.

Posted by: Information Services
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