Palm oil pushes up global food price in April- FAO  

 

Global prices of key staple food commodities rose in April, marking its third consecutive monthly increase after four years of decline, according to the Food and Agricultural Organisation (FAO).

The FAO Food Price Index averaged 151.8 points in April, a 0.7 percent increase from March. That is about 10 percent below its level of a year ago and more than a third off its 2011 highs.

The gradual increase is far from even across the board. April’s increase was driven by palm oil prices and, in a minor key, cereals, while sugar prices tapered down after a strong increase in March.

The FAO Food Price Index is a trade-weighted index tracking international market prices for five key commodity groups: major cereals, vegetable oils, dairy, meat and sugar. Its decline over the past year reflects ample food supplies, a slowing global economy and a stronger U.S. dollar.

The FAO Vegetable Oil Price index rose 4.1 percent, due largely to a grim 2016 production outlook for palm oil coupled with a growing worldwide demand.