The world food price index fell for the seventh month in a row in February 2024, mainly as a result of falling grain prices that offset rising sugar and meat prices, the UN’s Food and Agriculture Organization said on Friday. Agriculture (FAO), reports AFP.

Each month, FAO publishes its own Food Price Index, which measures price changes in a food basket consisting of: cereals, vegetable oils, dairy products, meat and sugar.

In February of this year, this index averaged 117.3 points, decreasing by 0.7% compared to the level of 118.2 points recorded in January. The value in February 2024 is 10.5% lower than in the last 12 months and, at the same time, at the lowest level since February 2021.

The main reason for this decline is the drop in world prices for grain – in February by 5% compared to January and by 22.4% compared to the level of February last year.

“Export prices for corn have fallen the most, and forecasts of abundant harvests in Argentina and Brazil, as well as competitive prices offered by Ukraine, which wants to take advantage of a well-functioning sea trade route, are putting pressure on the market,” the UN agency, based in Rome, said in your last monthly report.

Global vegetable oil prices fell 1.3% from January and 11% below February 2023. International soybean oil prices also fell on the prospect of bumper harvests in South America, while for sunflower and canola oils, large volumes available for export pushed prices lower.

In contrast, international sugar prices rose 3.2% in February amid continued concerns about Brazil’s next sugarcane crop due to lack of rainfall and estimates of production cuts in Thailand and India, the two main sugar exporters.

At the same time, meat prices increased by 1.8% compared to January after seven consecutive months of decline. Poultry meat rose in price the most, followed by beef. Pork prices rose slightly due to increased demand from China. On the other hand, international lamb prices fell due to record production in Australia.

Separately, on Friday, the FAO published a new report on the demand and supply of cereals. The FAO raised its estimates for world cereal production this year by 1.1 percent to 2.840 billion tons, thanks to increased corn shipments to Brazil, China and the United States.

Also on Friday, the FAO forecast that world wheat production in 2024 would increase by 1% compared to 2023, to 797 million tonnes, as a result of favorable weather conditions in North America, Russia, China, India, Iran, Pakistan and Turkey. . (Agerpress)