"Gas prices are already a burden"... Grain and meat prices are also rising

According to Financial News, following the outbreak of war between the United States of America (US) and the Islamic Republic of Iran, crude oil prices have surged, and global food prices are now climbing sharply as well.
The Ministry of Agriculture, Food and Rural Affairs (MAFRA) announced on the 4th that last month’s FAO Food Price Index (FFPI), released by the Food and Agriculture Organization of the United Nations (FAO), stood at 128.5, up 2.4% from the previous month. Prices rose across all major categories: cereals, edible oils and fats, meat, dairy products, and sugar.
The FFPI compares global food prices against the 2014–2016 average, which is set at 100. The index had fallen for five consecutive months through January, but it rebounded in February and continued its upward trend in March.
The Cereal Price Index reached 110.4, a 1.5% increase from the previous month. International wheat prices rose 4.3% on expectations of reduced planting due to drought in the US and the possibility of higher fertilizer costs in Australia. Corn prices edged up 0.9%; despite concerns over higher fertilizer costs ahead of the Northern Hemisphere planting season and stronger ethanol demand driven by rising energy prices, global supply remains relatively ample.
The FAO Meat Price Index climbed 1.0% from the previous month to 127.7. Seasonal demand in the European Union (EU) pushed up pork prices, leading the overall increase, while beef prices also rose as exportable supplies from Brazil declined. In contrast, chicken prices fell slightly thanks to sufficient domestic supply in Brazil.
The FAO Dairy Price Index came in at 119.4, up 1.2% from a month earlier. After trending downward since July last year, the index turned upward again, driven by higher prices for skim milk powder, whole milk powder, and butter.
The Vegetable Oil Price Index and the FAO Sugar Price Index posted relatively large gains. The Vegetable Oil Price Index rose 5.1% from the previous month to 183.1. Palm oil prices hit their highest level since mid-2022, surpassing soybean oil, as international crude oil prices climbed and production in Malaysia declined. Sunflower oil and rapeseed oil also moved higher on expectations of tighter supplies from the Black Sea region and stronger demand linked to rising energy prices.
The FAO Sugar Price Index jumped 7.2% from the previous month to 92.4. A key driver was the expectation that Brazil will divert more sugarcane to ethanol production rather than sugar, due to higher international crude oil prices. Heightened concerns over trade disruptions stemming from escalating conflicts in the Middle East further added upward pressure on prices.

fair@fnnews.com Han Young-jun Reporter