FAO: Food prices rise for the third consecutive month due to the war in Iran

This was reported by the Food and Agriculture Organization of the United Nations (FAO).

The FAO Food Price Index averaged 130.7 points in April, which is 1.6% higher than the revised level in March and 2% higher than a year ago.

The cereal price index increased by 0.8% compared with March and by 0.4% compared with last year. Global wheat prices rose by 0.8% due to concerns over drought in some parts of the United States and forecasts of lower rainfall in Australia. The indicator was also affected by a reduction in wheat plantings in 2026, as farmers cut back on the use of fertilizers and energy resources amid problems caused by the blockade of the Strait of Hormuz.

Global corn prices increased by 0.7% due to weather conditions in Brazil and the United States, while rice prices rose by 1.9%. At the same time, global sorghum prices declined by 4%.

Meanwhile, the FAO vegetable oil price index rose by 5.9% compared with March, reaching its highest level since July 2022. The increase was driven by higher prices for palm, soybean, sunflower and rapeseed oils, amid potentially stronger demand from the biofuel sector. Prices were also supported by concerns over a decline in production in Southeast Asia in the coming months.

The meat price index reached a new record high in April, adding 1.2% compared with the previous month and 6.4% compared with last year. Global beef prices hit a new peak amid reduced slaughter in Brazil. Pork prices increased due to higher prices in the European Union, although this was partially offset by lower prices in Brazil.

By contrast, the dairy price index decreased by 1.1% compared with March. International quotations for butter and cheese declined amid large milk stocks in the European Union and higher-than-expected end-of-season production in Oceania.

Sugar prices fell by 4.7% compared with March and by 21.2% compared with last year. This was supported by improved prospects in key Asian producing countries, particularly China and Thailand, as well as the start of the new harvest in Brazil.