The FAO Cereal Price Index averaged 227 points in March, up 1 point from February. Maize prices registered some gain, supported by low inventories and a strong soybean market, but wheat changed little as supplies remained ample. After several months of declines, prices of rice recovered somewhat in March, underpinned by large purchases by China and Nigeria.
FAO Food Price Index
The FAO Meat Price Index averaged 178 points in March, up marginally from the previous month, sustained by a slight rise of bovine meat prices to what would be an all time high. Prices of pig meat and sheep meat changed little, while they weakened in the case of poultry amid slowing import demand and generally ample export availabilities. On average, meat prices in the first quarter, were 3.5 percent higher than last year.
FAO Food commodity price indices
The FAO Sugar Price Index averaged 342 points in March, unchanged from February, but 30 points (8 percent) lower than in March 2011. Overall, sugar prices were volatile, as the market looked for direction ahead of the beginning of the new season in Brazil, the world’s largest sugar producer and exporter.
India, the EU and Thailand, have all reported increased output, which contributed to keeping prices below their high levels of last season. The announcement by India to allow 1 million tonnes more exports also weighed on prices.