Commodities Buzz: FAO food price index up 1.6% on month, vegetable oil prices soar

World food prices extended gains in April to hit their highest in more than three years, with vegetable oils particularly elevated due ‌to the Iran war and the effective closure of the Strait of Hormuz, ‌the United Nations Food and Agriculture Organization (FAO) said on Friday. The FAO Food Price Index (FFPI) averaged 130.7 points in April 2026, up 2.1 points (1.6 percent) from its revised March level, marking a third consecutive monthly increase, albeit at a lower rate than in the previous month. Price indices for vegetable oils, meat and cereals rose to varying degrees, offset by declines in sugar and dairy products. Compared to historical levels, the FFPI in April stood 2.5 points (2.0 percent) higher than a year ago but remained as much as 29.6 points (18.4 percent) below its peak in March 2022.

The FAO Cereal Price Index averaged 111.3 points in April, up 0.9 points (0.8 percent) from March and 0.4 points (0.4 percent) from its level a year earlier. The monthly increase reflected higher prices across major cereals, except sorghum and barley. World wheat prices increased by 0.8 percent, reflecting upward pressure from drought in parts of the United States of America and a higher likelihood of below-average rainfall in Australia.

The FAO Vegetable Oil Price Index averaged 193.9 points in April, up 10.9 points (5.9 percent) from March and reaching its highest level since July 2022. The continued increase was driven by higher prices of palm, soy, sunflower and rapeseed oils.

The FAO Meat Price Index averaged 129.4 points in April, up 1.6 points (1.2 percent) from March and 7.8 points (6.4 percent) above its level a year earlier, reaching a new record high.

The FAO Dairy Price Index averaged 119.6 points in April, down 1.3 points (1.1 percent) from March, while remaining 32.1 points (21.2 percent) below its level a year earlier. The decline was mainly driven by lower international quotations for butter and cheese, which more than offset continued increases in the prices of skim milk powder (SMP), while whole milk powder (WMP) prices remained broadly stable.

The FAO Sugar Price Index averaged 88.5 points in April, down 4.3 points (4.7 percent) from March and as much as 23.8 points (21.2 percent) from a year ago. The drop in April was mainly driven by expectations of ample global supplies in the current season, reinforced by improved production prospects in key Asian producing countries, notably China and Thailand.

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