FAO cereal price index increased in March

The FAO Cereal Price Index averaged 111.3 points in April, up 0.9 points (0.8%) from March and 0.4 points (0.4%) from its level a year earlier. The monthly increase reflected higher prices across major cereals, except sorghum and barley.

World wheat prices increased by 0.8%, reflecting upward pressure from drought in parts of the United States of America and a higher likelihood of below-average rainfall in Australia. The price increase was further supported by expectations of reduced wheat plantings in 2026, as farmers shift to less fertilizer‑intensive crops amid high fertilizer prices, driven by elevated energy costs and disruptions linked to the effective closure of the Strait of Hormuz.

International maize prices increased by 0.7%, underpinned by seasonally tighter supplies and weather-related concerns in Brazil, as well as dry conditions affecting sowing in parts of the United States of America. Additional support came from firm ethanol demand amid elevated crude oil prices and ongoing concerns about fertilizer affordability.

The FAO All Rice Price Index increased by 1.9 percent in April, driven by higher Indica and fragrant rice prices, reflecting higher production and marketing costs in most rice-exporting countries following the surge in the prices of crude oil and its derivatives.

In contrast, world sorghum prices dropped by 4.0%, mostly due to weaker import demand, especially from China, and improved supply prospects in key producing and exporting countries.