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World cereal and vegetable oil prices down slightly in April from record levels in March

After surging to a record level in March, international coarse grain and vegetable oil prices dropped in April.

The FAO Cereal Price Index averaged 169.5 points in April, down 0.7 points (0.4%) from the record high reached in March (since 1990). After surging to a record level in March, international coarse grain prices dropped by 1.8% in April, led by a 3.0% decline in maize prices, as seasonal supplies from ongoing harvests in Argentina and Brazil helped ease the pressure on markets. World sorghum prices also declined in April by 0.4%, while tight supplies pushed barley prices up by 2.5%. International wheat prices edged upwards in April, albeit marginally, gaining 0.2%. Continued blockage of ports in Ukraine and concerns over 2022 crop conditions in the United States of America kept prices elevated, but the price increases were moderated by larger shipments from India, higher-than expected exports from the Russian Federation, and slightly dampened global demand as a result of high prices. International rice prices in April went up 2.3% from their March levels, sustained by a combination of strong local demand in various Asian exporters, purchases by Near Eastern and Chinese buyers and weather setbacks in the Americas.

The FAO Vegetable Oil Price Index averaged 237.5 points in April, shedding 14.3 points (5.7%) from the record high registered in March, but remaining markedly above its year-earlier level. The decline was driven by lower world prices of palm, sunflower and soy oils, which more than offset higher rapeseed oil quotations. International palm oil prices dropped moderately in April, mainly weighed by subdued global import purchases amid high costs as well as a weakening demand outlook in China. Nevertheless, uncertainties about export availabilities out of Indonesia, the world’s leading palm oil exporter, contained further declines in international prices. In the meantime, world sunflower and soy oil prices also fell month-on-month, largely tied to demand-rationing following the record high prices seen lately. By contrast, rapeseed oil prices stayed firm in April, sustained by lingering global supply tightness.