According to the statement made by FAO, the FAO Food Price Index, which monitors monthly changes in international prices of food products, reached 130.7 points in April, with an increase of 1.6 percent compared to the previous month.
Thus, the index reached the highest level recorded since February 2023.
The index rose for the third consecutive month, recording a 2 percent increase compared to the same period last year.
“The FAO Food Price Index rose for the third consecutive month in April, amid disruptions caused by rising energy costs and conflicts in the Middle East,” FAO said in a statement. The statement was included.
FAO Grain Price Index increased by 0.8 percent in April compared to the previous month and 0.4 percent compared to the same month last year.
World wheat prices increased by 0.8 percent due to the drought in the USA and insufficient rainfall in Australia. Rising fertilizer prices due to the increase in energy costs and the crisis in the Strait of Hormuz supported wheat prices by giving rise to the expectation that farmers would turn to products that require less fertilizer in 2026.
Vegetable Oil Price Index increased by 5.9 percent in April, reaching the peak of the last 21 months. The main factor in the increase in palm, soybean, sunflower and rapeseed oil prices was that rising crude oil prices triggered the demand for biofuel.
Palm oil gained for the fifth consecutive month on concerns about production declines in Southeast Asia.
The FAO Meat Price Index reached an all-time high with an increase of 1.2 percent in April. The limited supply of ready-to-slaughter cattle in Brazil has pushed world beef prices to the top.
Unlike grains and oils, the Sugar Price Index fell 4.7 percent in April. Positive production expectations in China and Thailand and the start of harvest in Brazil, the world’s largest producer, were effective in this decline.
The FAO Dairy Products Index decreased by 1.1 percent due to the impact of high production capacity in Europe and Oceania.
FAO INCREASED GLOBAL CEREAL PRODUCTION FORECAST
FAO also published the Grain Supply and Demand Summary Report, which includes evaluations and forecasts on global production, consumption, trade and stock trends.
The organization increased its 2025 global grain production forecast to a record level of 3 billion 40 million metric tons, increasing by 6 percent compared to the previous year. This revision strengthened the indications that the supply situation worldwide will remain largely positive for the 2025/26 period.
“STRAIT OF HORUZ” WARNING FOR 2026 WHEAT PRODUCTION
In the report, while providing information about the yield expectations for 2026, it was stated that the world wheat production estimate was reduced to 817 million tons. Despite this forecast indicating a decline of approximately 2 percent compared to last year, production is expected to remain above the average of the last 5 years.
The FAO report also stated that the closure of the Strait of Hormuz increases energy and fertilizer costs. It was noted that this situation will continue to trigger uncertainties and risks in wheat production.
