The global benchmark for food commodity prices recorded its first monthly increase in five months in February, driven by rising prices for cereals, vegetable oils and meat, according to the latest report from the Food and Agriculture Organization (FAO).
The FAO Food Price Index averaged 125.3 points in February, up 1.1 points (0.9%) from its revised January level, marking a reversal after five consecutive months of decline.
The increase was largely supported by higher price indices for cereals, meat and vegetable oils, which more than offset declines in dairy and sugar prices.
Despite the uptick, global food prices remain below recent historical levels. The index stood 1% lower than a year earlier and remains 22 per cent below its peak reached in March 2022, when food prices increased following supply disruptions triggered by the Russian invasion of Ukraine.
The FAO Cereal Price Index averaged 108.6 points in February, rising 1.1 per cent month-on-month, although still 3.5 per cent below its level a year earlier.
Global wheat prices increased 1.8 per cent during the month, supported by concerns over frost and potential winter crop damage in parts of Europe and the United States.
The FAO said logistical disruptions in Russia and ongoing tensions in the Black Sea region also contributed to the upward pressure on prices.
Prices for other coarse grains also moved higher. While maize prices remained broadly stable, barley prices strengthened on sustained demand from China for Australian supplies and purchases by North African importers sourcing from Europe. Sorghum prices also rose amid strong global demand.
Meanwhile, the FAO’s All Rice Price Index edged up 0.4% in February, supported by steady demand for basmati and Japonica varieties.
The FAO Vegetable Oil Price Index posted the strongest increase among major food categories.
The index averaged 174.2 points in February, up 3.3 per cent month-on-month, reaching its highest level since June 2022.
The increase reflected higher global prices for palm, soy and rapeseed oils, which outweighed a moderate decline in sunflower oil prices.
Soy oil prices rose on expectations of stronger global biofuel policy support in the United States, while rapeseed oil prices rebounded on stronger import demand for Canadian supplies. In contrast, sunflower oil prices eased slightly due to weaker demand and rising export availability from Argentina.
The FAO Meat Price Index averaged 126.2 points in February, rising 0.8 per cent from January and standing 8 per cent higher than a year earlier.
The increase was largely driven by stronger prices for cattle and sheep meat, while poultry and pig meat prices registered only marginal gains.
In contrast, the FAO Dairy Price Index fell 1.2 per cent month-on-month to 119.3 points, extending a downward trend that began in July 2025, largely due to continued declines in cheese prices.
Sugar prices recorded the heaviest decline among major food categories. The FAO Sugar Price Index averaged 86.2 points, down 4.1 per cent from January and 27% below its level a year earlier.
The FAO attributed the decline to expectations of abundant global supplies during the current production season, which have continued to exert downward pressure on world sugar prices.
