FAO Food Price Index rises for a second consecutive month

The FAO Food Price Index* (FFPI) averaged 128.5 points in March 2026, up 3.0 points (2.4 percent) from its revised February level, marking a second consecutive month of increase. Price indices across all commodity groups—cereals, meat, dairy, vegetable oils and sugar—rose to varying degrees, reflecting not only underlying market fundamentals but also responses to higher energy prices linked to the conflict escalation in the Near East. Compared to historical levels, the FFPI stood 1.2 points (1.0 percent) above its value a year ago but remained as much as 31.7 points (19.8 percent) below the peak reached in March 2022.

» The FAO Cereal Price Index averaged 110.4 points in March, up 1.7 points (1.5 percent) from February and 0.7 points (0.6 percent) from its year-earlier level. The increase reflected higher quotations for all major cereals except rice. International wheat prices rose by 4.3 percent, supported by deteriorating crop condition ratings in the United States of America amid drought concerns and expectations of reduced plantings in Australia in response to anticipated higher fertilizer costs. These upward pressures were partly offset by generally favourable crop conditions in Europe and strong competition among exporters, underpinned by still comfortable supply levels. World maize prices increased by only 0.9 percent, as ample global availability continued to weigh on markets, despite some support from fertilizer affordability concerns ahead of northern‑hemisphere planting and indirect support from improved ethanol demand prospects linked to higher energy prices. Prices of barley and sorghum also increased. By contrast, the FAO All Rice Price Index declined by 3.0 percent in March 2026, reflecting price decreases across all major market segments, driven by a combination of harvest pressure, weaker import demand, and currency depreciations against the United States dollar.

» The FAO Vegetable Oil Price Index averaged 183.1 points in March, up 8.9 points (5.1 percent) from February and marking a third consecutive monthly increase. The index also stood 21.3 points (13.2 percent) above its level one year ago. The continued increase was driven by higher quotations across palm, soy, sunflower and rapeseed oils. International palm oil prices reached their highest level since mid-2022 and moved to a premium over soyoil, largely reflecting spillover effects from the sharp increases in crude oil prices, while lower-than-expected production estimates in Malaysia provided additional support. World soyoil prices edged up only marginally, as expectations of stronger biofuel uptake in the United States of America were partly offset by seasonally rising export supplies from South America. Meanwhile, international sunflower and rapeseed oil prices were underpinned, respectively, by lingering supply tightness in the Black Sea region and prospects of stronger feedstock demand amid substantially elevated world energy prices.

» The FAO Meat Price Index averaged 127.7 points in March, up 1.2 points (1.0 percent) from February and 9.4 points (8.0 percent) above its level a year ago. The increase was mainly driven by higher pig meat prices, alongside a modest rise in bovine meat quotations, while ovine and poultry meat prices softened. Pig meat prices surged, underpinned by rising quotations in the European Union ahead of strengthening seasonal demand. World bovine meat prices also rose, led by Brazil, where tightening cattle availability curtailed exportable supplies against the backdrop of solid global demand; this was partly offset by stable prices in Australia, supported by ample availability. By contrast, ovine meat prices declined due to increased export supplies from New Zealand, although firmer prices in Australia—supported by sustained demand in key markets—partly mitigated the decline, despite higher tariffs imposed by the United States of America and logistical constraints affecting access to the Near East markets. World poultry meat prices edged lower, reflecting weaker quotations in Brazil amid ample supplies and steady import demand, with shipments to key Near East destinations rerouted through the Red Sea.

» The FAO Dairy Price Index averaged 120.9 points, up 1.5 points (1.2 percent) in March, but remained 27.8 points (18.7 percent) below its level a year earlier. This marked the first increase since July 2025, driven primarily by higher quotations for skim milk powder (SMP), butter, and whole milk powder (WMP), while lower international cheese prices limited the overall rise. SMP and WMP prices extended the upward trend observed since January, supported by firm global import demand and a seasonal decline in milk supplies in Oceania as the production cycle moved past its peak.  International butter prices also edged up, with stronger gains in Oceania reflecting tightening milk fat availability, while increases in the European Union remained moderate due to comfortable cream supplies amid improving seasonal milk flows. By contrast, cheese prices declined further in the European Union, where increased milk availability, higher cheese output, and subdued export demand weighed on quotations, while prices in Oceania firmed, supported by tighter supply conditions and relatively strong demand.

» The FAO Sugar Price Index averaged 92.4 points in March, up 6.2 points (7.2 percent) from February and reaching its highest level since November 2025 but remaining 24.5 points (21.0 percent) below its level a year ago. The increase in March was mainly influenced by higher international crude oil prices, raising expectations that Brazil, the world’s top sugar exporter, would rely more on sugarcane-based ethanol during the upcoming harvest. Additional upward pressure on sugar prices stemmed from concerns over the impact of the Near East conflict escalation on sugar trade flows. Nevertheless, the overall increase in world sugar prices was contained by the generally favourable global supply outlook for the 2025/26 season, supported by good harvest progress in India and Thailand.

Tags: prices, FAO