The United Nations Food and Agriculture Organisation (FAO) said on Friday that global food prices rose for a third consecutive month in April, driven by surging energy costs and disruptions in the Strait of Hormuz.

Food commodity prices averaged 130.7 points in April, up by 1.6 per cent from March and two per cent higher than a year earlier, according to the FAO Food Price Index.

It said cereal prices soared by 0.8 per cent from March and by 0.4 per cent year-on-year.

Drought concerns in parts of the United States and below-average rainfall expectations in Australia drove a 0.8 per cent increase in wheat prices.

The FAO said that reduced wheat planting by farmers, most of whom shifted to less fertiliser-intensive crops amid rising energy costs and the closure of the Strait of Hormuz, further exacerbated price increases.

“Despite the disruptions linked to the crisis in the Strait of Hormuz, global agrifood systems continue to show resilience,” said FAO chief economist Máximo Torero. “Cereal prices have increased only moderately so far, supported by relatively strong stocks and adequate supplies from previous seasons.”

The price of vegetable oil in April rose by 5.9 per cent from March, the highest level since July 2022. The FAO attributed the increase to higher prices for palm, soy, sunflower, and rapeseed oils.

“Vegetable oils, however, are experiencing stronger price increases, driven largely by higher oil prices, which are increasing demand for biofuels and putting additional pressure on vegetable oil markets,” said Mr Torero.

Maize prices surged by 0.7 per cent, supported by seasonal tightness in supply, weather concerns in Brazil, and dry conditions in parts of the U.S.

Strong demand for ethanol amid rising global oil prices and concerns over fertiliser affordability are also driving prices higher.

However, the FAO said weaker global import demand and improved supply prospects led to a 4.0 per cent drop in sorghum prices worldwide.

“The FAO All Rice Price Index rose by 1.9 per cent in April, driven by higher Indica and fragrant rice prices, reflecting increased production and marketing costs in most rice-exporting countries following the surge in the prices of crude oil and its derivatives,” it said.

The price of vegetable oil in April rose by 5.9 per cent from March, the highest since July 2022. The FAO attributed the increase to higher prices for palm, soy, sunflower, and rapeseed oils.

Palm oil prices rose for the fifth straight month in April due to stronger demand from the biofuel sector, policy incentives in producing countries, and higher crude oil prices.

The FAO said meat prices increased by 1.2 per cent from March and by 6.4 per cent from a year earlier amid limited supplies of slaughter-ready cattle in Brazil. Similarly, pork costs also soared.

Dairy prices fell by 1.1 per cent from March, while sugar prices also declined by 4.7 per cent in April and 21.2 per cent year-on-year, driven by ample supplies in Brazil, China, and Thailand.

Meanwhile, the FAO raised its 2025 cereals production forecast to 3,040 million tonnes, representing a 6.0 per cent increase from the previous year.

It also revised global wheat production to 817 million tonnes, a two per cent decrease from the previous year.

“The outlook continues to face uncertainty amid the effective closure of the Strait of Hormuz, which has raised input costs—most notably for energy and fertilisers—alongside relatively softer wheat prices,” it said.