The U.N. Food and Agriculture Organization (FAO) said Thursday that global food prices of staple food commodities rose in April for the third consecutive month. The FAO said that its food price index averaged 151.8 points in April, a 0.7 percent increase from March and about 10 percent below the level of a year ago and more than a third off its 2011 highs. April's increase was driven by palm oil prices and cereals, while sugar prices tapered after a strong climb in March. Vegetable oil prices rose 4.1 percent, due largely to a grim 2016 production outlook for palm oil coupled with a growing worldwide demand. Cereal prices gained 1.5 percent on the month, due primarily to international maize quotations, themselves influenced by a weaker U.S. dollar and spillover from the oilseeds complex. Dairy prices dropped 2.2 percent as stocks of butter and cheese in major exporters continued to grow. Meat prices rose 0.8 percent, pushed up by strengthening American demand for Australian beef. Sugar prices, meanwhile, fell 1.7 percent in April after a dramatic 17 percent increase the previous month. Sugar and vegetable oils are the only sub-indexes currently at levels higher than those of April 2015.
