Global food prices have been falling for 7 consecutive months

The Food and Agriculture Organization of the United Nations (FAO) has released its Food Price Index for February, which tracks monthly changes in international prices of a basket of food commodities. The Food Price Index, which has extended its downward streak to 7 months, declined primarily due to a decrease in cereal prices.

The Cereal Price Index fell by 5 percent in February compared to the previous month and by 22.4 percent compared to the same period last year. The sharpest decline in this index occurred in maize, driven by high harvest expectations in South America and competitive pricing from Ukraine.

RICE PRICES EXPERIENCED A DECLINE

Wheat prices also decreased due to strong export figures from Russia. In February, international rice prices also fell by 1.6 percent.

The Vegetable Oil Price Index decreased by 1.3 percent monthly and 11 percent annually in February. While soybean oil prices fell significantly due to high production expectations in South America, the abundance of sunflower and rapeseed oils in global markets also pushed prices down. Palm oil prices, however, showed an increase due to seasonally low production.

The Sugar Price Index increased by 3.2 percent in February. This rise was driven by lower production expectations in Brazil due to prolonged below-average rainfall, as well as forecasts of reduced production in Thailand and India.

MEAT PRICE INDEX ROSE

The Meat Price Index rose by 1.8 percent in February. The increase was driven by a rise in poultry and bovine meat prices. The Dairy Price Index also increased by 1.1 percent, influenced by rising import demand for butter from buyers in Asia. Milk powder and cheese prices also showed an increase.