The FAO Food Price Index reached a new record in February with an average of 140.7 points. This is 5.3 points (3.9%) higher than in January and even 24.1 points (20.7%) higher than a year ago.
The FAO Food Price Index reflects the monthly price changes in a basket of internationally traded food commodities.
It was primarily substantial price increases in vegetable oils and dairy products that made the difference. Grain and meat prices also rose, while sugar fell for the third consecutive month.
The FAO Cereal Price Index rose by 4.2 points (3%) in February and even by 14.8% compared to a year earlier. Prices for all major cereal types increased in February. In particular, global wheat prices rose by 2.1%, which the FAO largely attributed to the effects of the Russian war in the Ukrainian 'breadbasket.'
While export prices for coarse grains rose by 4.7%, corn prices increased month-on-month by 5.1%, mainly due to ongoing droughts in Brazil and Argentina.
The latter were supported by a combination of continuing concerns about weather conditions in Argentina and Brazil, rising wheat prices, and uncertainty about corn exports from Ukraine, an important exporter.
The FAO Vegetable Oil Price Index reached a new record in February with an average of 201.7 points, rising 15.8 points or 8.5% compared to January.
The FAO Dairy Price Index showed an upward trend in February for the sixth consecutive month. The FAO reported an increase of 8.5 points (6.4%) to an average of 141.1 points compared to January and 28 points (24.8%) compared to the same month last year. Besides the tight global supply, the ongoing import demand from North Asia and the Middle East led to a significant rise in prices for whole milk powder and cheese.
The FAO Meat Price Index averaged 112.8 points in February, just 1 percent higher than in January but 15.3% higher than a year ago. In February, beef prices reached a new record thanks to strong global import demand.
Pork prices were also slightly higher in February, due to strong domestic demand and reduced pork supply in the European Union and the United States.