The tightening supply of palm oils from producing regions and the strengthening of the Euro against the USD led to a surge in the prices of cooking oil and meat in March, the Food and Agriculture Organisation (FAO) says.
- •According to the FAO Food Price Index, vegetable oils price index went up by 3.7% month-on-month, an increase driven by higher prices of palm, soy, rapeseed and sunflower oils.
- •Rising demand contributed to stabilizing the market, while the strengthening of the euro against the USD supported the upward trend.
- •The FAO Dairy Price Index remained unchanged from February standing at 148.7 points in March.
“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,” says the FAO Food Price Index, a benchmark of global food commodity price developments.
“Meanwhile, world soyoil quotations increased, supported by robust global import demand due to its price competitiveness relative to other oils, despite subdued demand from the biofuel sector, particularly in the United States of America. International rapeseed and sunflower oil prices also increased from February, reflecting dwindling supplies from major exporters coinciding with a firm global import demand.”
The rise in meat index was primarily driven by higher pig meat prices, mainly due to rising quotations in the European Union after Germany regained foot-and-mouth-disease-free status, prompting key trading partners, such as the United Kingdom of Great Britain and Northern Ireland, to lift import bans.
Ovine meat prices also increased, supported by strong global demand ahead of the Easter holidays.
Meanwhile, poultry meat prices remained largely stable, as global supply and demand remained balanced despite the continued challenges posed by widespread avian influenza outbreaks in some major producing countries.
The index, which tracks monthly changes in the international prices of a set of globally traded food commodities, averaged 127.1 points in March, 6.9 percent higher than its corresponding level one year ago but remaining 20.7 percent below its March 2022 peak.
