The United Nations Food and Agriculture Organization (FAO) announced that global food prices rose in February for the first time in five months, driven by increases in cereal, meat, and vegetable oil prices.
According to the organization, the FAO Food Price Index, which tracks monthly changes in international prices of a basket of food commodities, rose 0.9% month-on-month in February, reaching an average of 125.3 points. The increase ended a five-month downward trend, although the index remained 1% lower compared with the same period last year.
FAO said the rise in wheat, vegetable oil, and meat prices offset declines in cheese and sugar prices, leading to the overall increase in the global food price index.
Cereal and Vegetable Oil Prices Rise
The Cereal Price Index increased 1.1% in February compared with January. The rise was largely driven by higher global wheat prices due to frost risks in Europe and the United States, as well as logistical disruptions in the Black Sea region.
Rice prices rose more modestly by 0.4%, supported by continued demand for basmati and Japonica varieties.
Meanwhile, the Vegetable Oil Price Index climbed 3.3%, reaching its highest level since June 2022. Seasonal production declines in Southeast Asia combined with rising global demand pushed palm oil prices higher. Expectations surrounding biofuel policies in the United States also contributed to an increase in soybean oil prices.
Meat Prices Increase, Dairy and Sugar Decline
The Meat Price Index rose 0.8% in February, driven primarily by sheep meat prices reaching an all-time high and higher beef prices amid strong demand from China and the United States.
In contrast, the Dairy Price Index fell 1.2%, largely due to declining cheese prices in the European Union. However, strong demand alongside supply constraints in major exporting countries pushed prices for skim milk powder, whole milk powder, and butter higher.
The Sugar Price Index dropped 4.1%, as expectations that global supply—particularly from record production in the United States—will exceed demand weighed on prices. As a result, sugar prices fell to their lowest level since October 2020.
Record Global Grain Production Expected
FAO also released its Cereal Supply and Demand Brief, which provides assessments and forecasts for global production, consumption, trade, and stock trends.
The organization raised its forecast for global cereal production in 2025 to a record 3.029 billion tons, following upward revisions for corn and rice output. This represents a 5.6% increase compared with the previous year.
By the end of the 2026 season, global cereal stocks are expected to rise, with the stock-to-use ratio projected at 31.9%, indicating that supply levels will remain within a safe range.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök