Global food price has fallen for the 11th consecutive time in February, according to Food and Agriculture Organisation (FAO) of the United Nations.
FAO revealed that food price index, tracked the most globally traded food commodities in the month of February.
The most traded commodities averaged 129.8 points in February, a marginal 0.6% decrease from January but 18.7% down from its peak in March 2022.
The organisation said decline in the index reflected drops in quotations for vegetable oils and dairy products that more than offset a steep rise in sugar prices.
“International wheat prices rose marginally during the month, as concerns over dry conditions in the United States and robust demand for supplies from Australia were largely countered by a strong competition among exporters,” FAO said.
According to the organisation, “International rice prices eased by 1.0% due to a slowdown in trading activities in most major Asian exporters, whose currencies also depreciated against the United States dollar”.
Tighter Export Availability In Europe
FAO said its vegetable oil price index declined 3.2% from January, with the world prices of palm, soy, sunflower seed and rapeseed oils all lower.
Similarly, the dairy price index declined 2.7% during the month, with butter and skim milk powder international quotations registering the steepest decline.
FAO said its meat price index also remained almost unchanged from January.
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It explained that world poultry prices continued to decline amid abundant export supplies, notwithstanding the avian influenza outbreaks in several leading producer countries, while international pig meat prices rose, mostly due to concerns over tighter export availability in Europe.
However, the sugar price index rose 6.9% from January to its highest level in six years, due to a downward revision to the 2022/23 production forecast in India.
“The February rebound was mostly related to the downward revision to the 2022/23 sugar production forecast in India, which dampened export prospects for the current season.
“Concerns over lower export availability from India amid strong global import demand lent additional support to world sugar prices,’’ FAO said.
“However, the good harvest progress in Thailand and abundant precipitation in the key growing areas of Brazil prevented a larger monthly price increase.
“The decline in international crude oil price quotations and ethanol prices in Brazil also contributed to limiting the upward pressure on world sugar prices.”
