Global food prices held steady in March as rising vegetable oil costs offset drops in cereals and sugar, offering mixed relief for feed producers. Meanwhile, FAO lowered its cereal trade forecast amid shrinking coarse grain stocks and divergent maize harvests in key regions.

The FAO Food Price Index remained stable in March at 127.1 points, as a 3.7% surge in vegetable oil prices balanced declines in cereals and sugar. For feed producers, the dip in maize, wheat, and sorghum prices offers potential cost relief, while pricier palm, soy, and rapeseed oils may squeeze margins for fat-rich diets.

Cereal prices fell 2.6% monthly, with wheat dropping as Northern Hemisphere crop concerns eased. Maize also declined, though trade volatility persists. The FAO noted, World poultry meat prices remained largely stable in March, despite the continued challenges posed by widespread avian influenza outbreaks—a reminder of ongoing risks for protein and feed demand.

On the supply side, FAO trimmed its 2024/25 global cereal trade forecast by 5.3 million tonnes, citing reduced Chinese imports. Coarse grain stocks are expected to shrink, while wheat and rice reserves grow. Southern Hemisphere maize harvests diverge, with Brazil and South Africa anticipating larger yields but Argentina facing declines.

For feed formulators, the data signals a nuanced outlook: cheaper grains may lower baseline costs, but oilseed volatility and disease-driven meat market disruptions warrant caution. The full report is available on FAO’s website.