The United Nations Food and Agriculture Organization (FAO) world food price index fell in February for the seventh month in a row, as lower prices for all major grains offset higher sugar and meat prices.
The organization said on Friday that its price index, which measures changes in the prices of the most widely traded primary food commodities globally, reached an average of 117.3 points in February, down from 118.2 points in the previous month, i.e. a 0.7 percent decline from the January level.
The current February reading is the lowest since February 2021.
The FAO report stated that international prices for all types of major cereals declined on a monthly basis.
Corn export prices recorded the largest decline in light of the expectations that influenced the market regarding a large harvest in Argentina and Brazil, in addition to the competitive prices offered by Ukraine, as it seeks to benefit from the smooth functioning of the maritime trade route.
With regard to wheat, the decline in international prices was mainly a result of lower prices for export, due to the acceleration in the pace of export in the Russian Federation, which pushed down prices from other sources, especially in the European Union.
In line with the decline in market prices of wheat and maize, international prices of barley and sorghum also declined.
International prices of poultry meat saw the largest increase, followed by beef, mainly driven by higher demand from the largest importing countries.
The rise in beef prices was attributed to lower-than-expected supplies from Australia, where heavy rains hampered the transport of livestock from major producing areas.
Global butter prices witnessed the largest increase due to the increase in demand for imports from buyers in Asia, and the decline in seasonal milk production in the countries of the Oceania region.
Meanwhile, whole milk powder prices continued to rise, but at a slow pace, mainly due to increased demand for imports, especially from China, and skim milk powder prices remained stable.
Sugar prices rose for the second month in a row, as concerns continued about the outlook for the upcoming season in Brazil after a period of below-average rains continued to support global sugar prices, which exacerbated the seasonal rise in prices.
Moreover, expectations of a possible decline in production in Thailand and China, two major exporting countries, contributed to the rise in prices.
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