Global food prices rose again in April, according to the latest figures from the Food and Agriculture Organization (FAO). Grains and vegetable oils, in particular, became more expensive due to drought, high energy costs, and continued uncertainty in commodity markets.
De FAO Food Price Index It stood at 130,7 points in April, an increase of 1,6 percent compared to March. With this, the index continues its upward trend for the third consecutive month. Compared to a year ago, global food prices are now 2 percent higher.
Grain market under pressure
The FAO Cereal Price Index rose to 111,3 points in April, an increase of 0,8 percent on a monthly basis. Wheat prices rose due to drought in parts of the United States and concerns about disappointing rainfall in Australia. Traders also expect farmers to sow less wheat in 2026 due to the high cost of fertilizer.
Those fertilizers have become significantly more expensive due to high energy prices and disruptions around the Strait of Hormuz. In addition, corn prices also rose, partly due to concerns about the weather in Brazil and dry conditions during planting in the United States.
Highest level for vegetable oil
The strongest increase was seen in vegetable oils. The FAO Vegetable Oil Price Index rose by nearly 6 percent in April to 193,9 points, the highest level since July 2022.
Palm oil became more expensive for the fifth consecutive month. According to the FAO, this is primarily due to increasing demand from the biofuel sector and concerns about lower production in Southeast Asia. Soybean and rapeseed oil also rose in price due to continued demand for biodiesel in the United States and Europe.
In addition, sunflower oil prices remain high due to tight supplies in the Black Sea region. Consequently, rising oil prices on the energy market have a direct impact on the global food chain.
Food market remains sensitive
Although food prices remain well below the peak of March 2022, analysts warn that the market remains vulnerable. According to the FAO, geopolitical tensions, energy prices, and extreme weather conditions are causing continued uncertainty in international food markets.
