April 15, 2024

FAO Cereal Price Index in March down 2.6% from February

The FAO Cereal Price Index averaged 110.8 points in March, down 3.0 points (2.6%) from February and 27.7 points (20.0%) below its March 2023 value.

Global wheat export prices declined for the third consecutive month in March, mostly due to continued strong export competition among the European Union, Russia and the United States.

Amid ample supplies, cancelled wheat purchases by China (from both Australia and the US) placed downward pressure on markets, while favourable crop prospects for the 2024 harvest in Russia and the US also contributed to the softer price tone.

By contrast, corn export prices edged marginally upwards month-on-month. Increasing buying interest, especially from China, amidst logistical difficulties in Ukraine and elsewhere, provided some support to corn prices, but it was countered by seasonal pressure in Argentina and Brazil where harvests are underway.

For other coarse grains, global prices of barley fell while those of sorghum increased in March.

The FAO All Rice Price Index declined by 1.7% in March, largely reflecting a subdued global import demand.

- FAO