Food and Agriculture Organization of UN: Global Food Prices Continue to Decline

The Food and Agriculture Organization (FAO) of the United Nations reported that global food prices declined by 0.7% in February compared to the previous month, primarily influenced by the decrease in grain prices.

The monthly Food Price Index, which monitors the international prices of the food commodity basket, was released by the FAO.

According to the data, the Food Price Index dropped by 0.7% to 117.3 points in February compared to the previous month. Food prices also experienced a 10.5% decrease in February compared to the same period last year, extending the downward trend for seven consecutive months.

The decline in the Food Price Index was particularly attributed to the decrease in grain prices. The Grain Price Index decreased by 5% in February compared to the previous month and saw a significant 22.4% decline compared to the same period last year.

The most substantial decrease in this index was observed in corn, driven by high yield expectations in South America and competitive prices from Ukraine. Wheat prices also fell due to robust export figures from Russia. Rice prices on the international markets decreased by 1.6% in February.

The Vegetable Oil Price Index witnessed a monthly decrease of 1.3%, contributing to an 11% decline on an annual basis. Soybean oil prices notably dropped due to high production expectations in South America, while ample global availability of sunflower and rapeseed oils also pushed prices lower. Palm oil prices, on the other hand, increased due to a seasonal decrease in production.

In contrast, the Sugar Price Index increased by 3.2% in February. This rise was attributed to below-average rainfall in Brazil affecting production expectations, coupled with anticipated reductions in production in Thailand and India.

The Meat Price Index rose by 1.8% in February, influenced by increases in poultry and cattle prices.

The Dairy Price Index also increased by 1.1%, driven by growing import demand for butter in Asia. Prices for milk powder and cheese also experienced upward trends.

The FAO’s report reflects the dynamic and interconnected nature of global food prices, influenced by various factors, including weather conditions, production expectations, and international trade dynamics.

source: prepared by Melisa Beğiç

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