Increases in the price indices for cereals, meat and vegetable oils more than offset declines in dairy and sugar prices and led to an increase in the CPI after five months of continuous decline, FAO said in a report today.
Cereal prices
In February, world cereal prices are 1.1 percent above January and 3.5 percent below year-ago levels. At the same time, world wheat prices rose by 1.8% in February, helped by reports of frost and increased risk of crop extinction in some regions of Europe and the United States. Another factor in price growth was logistical difficulties in Russia and continuing tensions in the Black Sea region.
International prices for coarse grains also increased, although not so significantly. At the same time, while global corn prices remained generally unchanged, barley quotes continued to strengthen amid steady demand from China and purchases by North African countries in Europe. Sorghum prices also increased on the back of strong international demand.
In February, the average CPI for all types of rice increased by 0.4%.
Vegetable oil prices
In February, vegetable oils rose in price by 3.3% compared to the previous month. At the same time, prices of products in this category reached the highest level since June 2022. This increase was driven by strengthening prices for palm, soybean and rapeseed oils. It more than covered the decrease in sunflower oil quotations.
Meat prices
In February, meat prices on the world market rose by 0.8% as compared with the previous month. At the same time, the current price level is 8% higher than in the same period last year. Such an increase was largely due to the growth of world prices for beef and mutton, while poultry and pork quotations showed only a slight increase.
In the European Union, prices stabilized as delays in slaughtering animals during the holiday season, which had exacerbated the price decline a month earlier, were largely eliminated. Poultry prices rose marginally. Steady high import demand in several markets was partly counterbalanced by ample supply in key producing countries, which limited price increases.
Dairy prices
Dairy products fell in price by 1.2% last month. Compared to the situation in February last year, prices for products of this category decreased by 19.2%. Thus, the downward trend, which started in July 2025, continued in February. The recorded weakening of the index value was mainly due to the continuing decline in cheese prices, especially in the European Union.
Sugar prices
Sugar in the world fell in price in February by 4.1% compared to the price level in the previous month. Compared to a year earlier, sugar fell in price by 27.3%. Thus, the value of this index decreased for the second month in a row and is at its lowest level since October 2020.
