The benchmark for world food commodity prices declined for the seventh consecutive month in February, as lower international cereal quotations more than offset rising prices for milk and meat, according to the Food and Agriculture Organization (FAO) of the United Nations (UN).
The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 117.3 points in February, down 0.7% from January and 10.5% from the same month a year ago.
The FAO Cereal Price Index decreased by 5% in February to reach a level 22.4% below that of February 2023.
Maize export prices saw the most significant drop, amid expectations of large harvests in South America and competitive prices offered by Ukraine, while international wheat prices declined mostly due to strong exports from Russia.
International rice prices also declined, by 1.6%, in February.
International soyoil prices dropped notably, underpinned by prospects of significant soybean outputs in South America, while ample global export availabilities of sunflower and rapeseed oils pushed their prices down.
On the other hand, the FAO Meat Price Index rose by 1.8% from January, with poultry meat quotations rising the most, followed by those for beef and other bovine-sourced meat, which has been impacted by heavy rains disrupting cattle transportation in Australia.
Pig meat prices also rose slightly due to higher demand from China and a tight supply situation in western Europe. International sheepmeat prices declined due in part to record-breaking production in Australia.
The FAO Dairy Price Index increased by 1.1%, led by higher import demand from Asian buyers for butter. Prices of milk powders and cheese also rose marginally.
Cereal supply and demand
The FAO also released a new Cereal Supply and Demand Brief, slightly raising its forecast for the global cereal production in 2023 to 2.84 billion tonnes when the final data for last year is known.
Global cereal utilization in 2023/2024 is now forecast at 2.83 billion tonnes, an increase of 1.1% from the previous year due mostly to increased use of maize and wheat for livestock feed.
Global cereal stocks are expected to increase, due entirely to coarse grains, with the global cereal stocks-to-use ratio expected to end the year at 31.1%, up from 30.9%.
Global trade in cereals is predicted to increase by 1.3% from 2022, buoyed by an improved outlook for maize exports by Ukraine and stronger demand from China.
The FAO said its preliminary forecast for global wheat production in 2024, pegging it at 797 million tonnes, a 1% increase form 2023.