May 16, 2023

FAO Cereal Price Index: Decline for wheat, maize prices in April

The FAO Cereal Price Index averaged 136.1 points in April, down 2.4 points (1.7%) from March and as much as 33.5 points (19.8%) below its value one year ago.

A decline in world prices of all major grains outweighed an increase in rice prices month-on-month.

International wheat prices declined by 2.3% in April to their lowest level since July 2021, principally driven by large exportable availabilities in Russia and Australia. Favourable crop conditions in Europe, along with an agreement at the end of April allowing Ukrainian grains to transit through European Union countries that had imposed import restrictions on grain from Ukraine earlier in the month, also contributed to the overall softer tone in markets.

Global maize prices also fell, by 3.2% in April, mostly driven by higher seasonal supplies in South America as harvesting continued and favourable prospects point to a record output in Brazil.

Among other coarse grains, global prices of barley and sorghum also declined, by 4.3% and 0.3%, respectively, reflecting weak global demand and spillover from weakness in international maize and wheat markets.

By contrast, sales to Asian buyers buoyed international rice prices during April. As a result, rice export quotations reversed most of the declines they registered in March 2023.

- FAO