PARIS, March 6 (Reuters) – World food prices rose in February after falling for five straight months, as higher cereal, meat and most vegetable oil prices outweighed declines in cheese and sugar, the United Nations’ Food and Agriculture Organization said on Friday.
The FAO Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 125.3 points in February, up from a revised 124.2 in January.
The index was still 1% below its value a year earlier and nearly 22% below its March 2022 peak, reached after the start of the war in Ukraine.
Average cereal prices increased 1.1% from the previous month, with wheat prices rising 1.8% due to weather risks in Europe and the United States as well as continuing logistical disruptions within the Russian Federation and the wider Black Sea region. They were still 3.5% below their level of a year earlier.
Rice prices edged up 0.4%, supported by sustained demand for basmati and Japonica varieties.
Vegetable oil prices climbed 3.3%, reaching their highest level since June 2022. Palm oil prices increased due to strong global demand and lower output in Southeast Asia, while soyoil prices rose on expected policy support for biofuel in the U.S.
Meat prices rose 0.8% from January, led by record prices for sheep meat and stronger demand for beef in the U.S. and China.
Dairy prices fell 1.2%, extending a months-long decline, mainly due to lower cheese prices in the European Union. However, skimmed and whole milk powder and butter prices increased on strong demand amid tight supply in key exporters.
Sugar prices dropped 4.1% to their lowest since October 2020, reflecting expectations of ample global supply, including record output in the United States.
In a separate report, the FAO slightly raised its 2025 global cereal production forecast to a record 3.029 billion metric tons, reflecting minor adjustments, mainly to maize and rice estimates. It would be 5.6% higher year-on-year.
World cereal stocks by the close of the 2026 season are also set to rise, with the global stocks-to-use ratio seen at a comfortable 31.9%.
(Reporting by Sybille de La Hamaide; Editing by Alexandra Hudson and Kevin Liffey)
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