Global food commodity prices moved higher in February for the first time in five months, driven mainly by rising prices for wheat, vegetable oils and several types of meat, according to new data released Friday by the United Nations’ Food and Agriculture Organization (FAO).
The FAO food price index - which tracks monthly changes in international prices for a basket of globally traded food commodities - averaged 125.3 points in February, up 0.9% from January. Despite the monthly gain, the index remained 1% below its level from a year earlier, reflecting broader easing in food prices over the past year.
The FAO cereal price index averaged 108.6 points in February, rising 1.1% from January but still 3.5% lower than a year ago. The increase was led by wheat, with global prices climbing 1.8% during the month. The gains were supported by concerns about frost damage and winterkill risks in parts of Europe and the U.S. Logistical disruptions in Russia and ongoing tensions in the Black Sea region also contributed to the firmer tone in the wheat market.
Prices for other grains moved higher more modestly. International corn prices were largely steady, while barley values firmed due to sustained demand from China for Australian supplies and purchases from North African buyers sourcing from Europe.
Vegetable oils posted the strongest increase among major food categories. The vegetable oil price index averaged 174.2 points, up 3.3% from January and the highest level since June 2022. Prices for palm, soybean and rapeseed oil all increased, offsetting a modest decline in sunflower oil values. Palm oil prices climbed for a third straight month amid strong global import demand and seasonally lower production in Southeast Asia. Soybean oil prices strengthened on expectations of supportive biofuel policies in the U.S., while rapeseed oil values rebounded on prospects for stronger import demand for Canadian supplies.
The meat price index rose 0.8% in February, led by record-high prices for sheep meat and firmer cattle prices driven by strong import demand from China and the U.S. Pork and poultry prices also edged higher.
In contrast, the dairy index fell 1.2%, mainly due to lower cheese prices, although milk powder prices strengthened amid rising demand from North Africa, the Near East and Southeast Asia.
Meanwhile, the sugar price index dropped 4.1% from January and stood 27.3% below its level a year earlier, reflecting expectations for ample global supplies during the current production season.
