FAO reports a continuous decline in global food prices for the seventh month running in February

In February, the global food prices witnessed a decline for the seventh month in a row, influenced by the fall in grain prices which overshadowed the rise in sugar and meat costs, as reported by the Food and Agriculture Organization (FAO) on Friday. This agency of the United Nations (UN) highlighted that its food price index saw a reduction of 0.7 percent for the month and stood 10.5 percent lower compared to the same month last year. The FAO index tracks the prices of commodities in the market, and there might be a delay before these changes are seen on the shelves of retail stores. The prices reflected are only a segment of the ultimate cost of the processed goods.
The agency reported a significant 5 percent drop in the price of grains in February alone, which marked a 22.4 percent decrease from February the previous year. This decrease was notably influenced by corn due to the anticipation of a substantial harvest in South America, in addition to Ukraine offering competitive pricing. The downward movement in wheat prices was attributed to an increase in exports from Russia; similarly, there was a decline in rice prices. The plentiful harvest in South America also led to lower prices for vegetable oil. Nevertheless, sugar prices went up by 3.2 percent due to the dry conditions in Brazil. The meat index climbed by 1.8 percent, influenced by the heavy rainfall that hampered cattle transport processes in Australia, while a constrained supply in Europe led to a surge in demand for pork in China.