Commodities Buzz: FAO Food Price Index up around 7% on year in March

The FAO Food Price Index (FFPI) averaged 127.1 points in March 2025, remaining nearly unchanged from February. Declines in cereals and sugar price indices offset increases in those of meat and vegetable oils, while the dairy price index remained stable. Overall, the FFPI was 8.2 points (6.9 percent) higher than its corresponding level one year ago but remained 33.1 points (20.7 percent) below its peak reached in March 2022.

The FAO Cereal Price Index averaged 109.7 points in March, down 2.9 points (2.6 percent) from the previous month and 1.2 points (1.1 percent) lower than in March 2024. Global wheat prices declined in March as concerns over crop conditions subsided in some major Northern Hemisphere exporters, while uncertainty over rising trade tensions weighed on market sentiment.The FAO All Rice Price Index declined by 1.7 percent in March, as weak import demand and ample exportable supplies kept export quotations under downward pressure.

The FAO Vegetable Oil Price Index averaged 161.8 points in March, up 5.8 points (3.7 percent) month-on-month and remaining significantly higher (23.9 percent) than its level a year earlier. The continued increase in the index was driven by higher prices of palm, soy, rapeseed and sunflower oils. International palm oil prices rose for the second consecutive month, primarily due to persistently tight supplies in major producing countries in Southeast Asia, where outputs were at their seasonal lows.

The FAO Dairy Price Index stood at 148.7 points in March, unchanged from February 2025 but still 24.6 points (19.9 percent) higher than its value a year ago. The index stability reflects a decline in international cheese prices offset by increases in butter and milk powder quotations. International butter prices increased for the third consecutive month, up 3.9 percent compared to February, driven by strong retail sales and growing international demand amid seasonally declining supplies in Oceania and sluggish production in Europe.

The FAO Sugar Price Index averaged 116.9 points in March, down 1.6 points (1.4 percent) from February and 16.5 points (12.3 percent) from its value a year ago. The decline was mainly driven by signs of weaker global demand, which has alleviated concerns over tight global sugar supplies. Additionally, recent rainfall in key sugarcane growing areas of southern Brazil, following a period of prolonged dry weather, further contributed to the decline in world sugar prices.

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