FX.co ★ World Food Prices Stable in March

The FAO Food Price Index recorded a slight increase to 127.1 points in March 2025, up from a revised 126.8 in February. Notably, cereal prices dropped by 2.6%, reaching their lowest point since September 2020. The decline was driven by improved crop conditions in key Northern Hemisphere exporters, although rising trade tensions created uncertainty in the market. Nonetheless, currency fluctuations, supply constraints in Russia, and Turkey's abolition of its wheat import quota helped temper this decline. Additionally, sugar prices experienced a 1.4% decrease due to indications of waning global demand, mitigating previous concerns over limited worldwide supply. Conversely, the cost of vegetable oils rose by 3.7%, led by increased prices of palm, soy, rapeseed, and sunflower oils. Meat prices also increased by 0.9%, mainly attributed to a rise in pig meat prices, particularly in the European Union after Germany regained its status as foot-and-mouth disease-free. Meanwhile, dairy prices remained stable.