The FAO index, which tracks the dynamics of international prices for key products, reached 125.3 points. World food prices rose for the first time in five months Economic development
World food prices showed growth in February for the first time in five months. According to the updated index of the UN Food and Agriculture Organization (FAO), increases in prices for wheat, most vegetable oils and some types of meat outweighed decreases in prices for cheese and sugar.
The FAO index, which tracks the dynamics of international prices for key products, reached 125.3 points – this is 0.9 percent higher than in January, although still one percent below last year’s level.
Price dynamics for main product groups
On average, grain prices in the world rose by 1.1 percent in February. The increase in world wheat prices is associated with reports of frost in Europe and the United States, as well as ongoing logistics disruptions in Russia and the Black Sea region. International corn prices also rose slightly, while the rice index added 0.4 percent on strong demand for basmati and Japanese rice varieties.
Vegetable oils showed growth of 3.3 percent, reaching their highest since June 2022. Palm oil has risen in price due to high global demand and a seasonal decline in production in Southeast Asia. Soybean oil prices rose amid expectations of new measures to support biofuels in the United States, and rapeseed oil prices rose due to forecasts of increased imports of Canadian products. Sunflower oil, on the contrary, fell slightly in price due to increased exports from Argentina.
Meat prices increased by 0.8 percent. The cost of lamb has reached an all-time high, and beef has risen in price due to high demand from China and the United States. Pork and poultry also showed slight increases.
Dairy products fell in price by 1.2 percent, mainly due to lower prices for cheese. At the same time, prices for skimmed and whole milk powder increased due to strong demand in North Africa, the Middle East and Southeast Asia. Butter prices have risen for the first time since the record level of June 2025.
Sugar fell by 4.1 percent over the month and by 27.3 percent compared to February 2025, due to expectations of abundant global supplies this season.
Forecasts for 2026: reduction in wheat plantings
FAO also presented a preliminary forecast for wheat production in 2026 year. The global harvest is expected to fall by about three percent to about 810 million tons, while remaining above the average of the past five years.
In the European Union, Russia and the United States, farmers are reducing the area under winter wheat due to lower prices. In India, on the contrary, the forecast is favorable: record plantings are stimulated by government support measures. Positive expectations are also noted in Pakistan and China in general.