THE FAO FOOD PRICE INDEX GROWING FOR THE SECOND MONTH IN A ROW

The average FAO Food Price Index rose by 3 points (2.4%) in March compared to February and amounted to 128.5 points. So, there has been a growth for the second month in a row, which results from both market situation and the reaction to the increase of energy prices due to the escalation of the conflict in the Middle East. The index has risen by 1.2 points (1%) over a year, but at the same time, it is 31.7 points (19.8%) lower than the peak level recorded in March 2022. The average FAO Food Price Index for grains was 110.4 points in March, up 1.7 points (1.5%) on February and up 0.7 points (0.6%) on last year. Global wheat prices have increased by 4.3% due to worsening of yield status assessments in the USA, as well as the estimated reduction of cultivated areas in Australia in view of the expected growth of fertilizer prices. At the same time, the FAO Food Price Index decreased by 3% for all types of rice in March, which is explained by the decline in prices in all the key market segments due to the arrival of a new yield, weakening of import demand, and a decline in the exchange rates of national currencies to dollar.
Source: https://www.agroinvestor.ru/markets/news/45774-indeks-prodovolstvennykh-tsen-fao-rastet-vtoroy-mesyats-podryad/