World food commodity prices ticked slightly higher in February, with the increase partially driven by rising vegetable oil values.
The Food and Agriculture Organization of the United Nations on Friday reported that its food price index averaged 127.1 points last month, up 1.6% from January and 8.2% higher than the same month last year. In January, the food price index – which tracks monthly changes in the international prices of a set of globally-traded food commodities – was down 1.6% from December.
Most of the February increase in the food price index was driven by sugar values, which jumped 6.6% following three straight months of decline. Dairy values gained 4%, while vegetable oil prices climbed 2%. The vegetable oil price index, which has soared more than 29% from the year-ago level, was boosted in February by seasonal supply constraints in Southeast Asia and robust demand from the biodiesel sector, the FAO said.
The February gains in the sugar index were attributed to concerns over likely tighter global supplies for the 2024-25 season, particularly due to declining production prospects in India and adverse weather conditions affecting crops in Brazil.
Meanwhile, the cereal price index edged up 0.7% in February, averaging 112.6 points. Wheat prices increased due to tighter supplies in the Russian Federation and concerns over crop conditions in eastern Europe and North America, though the overall index remained slightly below its February 2024 level. World corn prices continued to rise, underpinned by tightening supplies in Brazil and strong US export demand. On the other hand, world rice prices fell by 6.8% in February due to ample exportable supplies and weak import demand.
The meat price index held steady in February, averaging 118 points, down just 0.1% from January. While international poultry and pork prices eased due to abundant supplies, beef and sheep meat prices remained firm, supported by strong global import demand.
