FAO Food Prices Hit Three-Year High as Blockade of the Strait of Hormuz Sends Cooking Oil Prices Soaring

[Financial News] Global food prices surged in April to their highest level in three years.
In particular, cooking oil prices led the increase as the Strait of Hormuz was effectively blocked amid the fallout from the war with Iran.
On the 8th local time, the Food and Agriculture Organization of the United Nations (FAO) said the FFPI rose 1.6% from the previous month to 130.7 points in April. It marked the third straight monthly increase and the highest reading since February 2023.
The main driver of the price increase was vegetable oils. FAO's Vegetable Oil Price Index jumped 5.9% from the previous month, reaching its highest level since July 2022.
Maximo Torero, FAO chief economist, explained that "rising energy costs are pushing up oil prices, which in turn is boosting demand for biofuels made from oilseed crops."
Soybean oil, sunflower oil and rapeseed oil all rose, along with palm oil, which was also affected by biofuel policy.
Meat prices also rose 1.2% from the previous month to an all-time high, driven by a shortage of livestock for slaughter in Brazil. By contrast, sugar prices fell 4.7% on expectations of abundant supply from Brazil, China and Thailand.
Even amid geopolitical turmoil, grain prices posted a relatively modest increase of 0.8%. FAO said the agri-food system remained resilient thanks to ample inventories from the previous season.
Concerns were also raised over a sharp rise in fertilizer prices. FAO added that "higher fertilizer prices are expected to reduce wheat planting area in 2026 as farmers shift to crops that require less fertilizer."
Meanwhile, FAO separately raised its forecast for global grain production in 2025 to 3.04 billion tons, up 6% from a year earlier, signaling a record high.

jjyoon@fnnews.com Yoon Jae-joon Reporter