The UN’s Food Price Index (FPI) lowered for the first time in months after toppling a new record in March. Lower palm, sunflower and soybean oil prices helped lead the 0.8% dip, a welcome relief for low-income and food-deficit countries.
High prices slowed the demand for vegetable oils, evidenced by the index falling 5.7%, one-third of the previous month’s increase. China also told the market it would need less imported oils this year, while uncertainty in Indonesia remains about its policy on palm oil exports. Meanwhile, the grain index dropped 0.7%, led by a 3% drop in corn prices.
Food prices remain near recent highs, reflecting the continued market tightness and challenges to global food security for those most vulnerable.