FAO Vegetable Oil Price Index rose 2% in February
In February 2025, the average value of the FAO Food Price Index increased by 1.6% or 2 points compared to January to 127.1 points, which was 8.2% higher than the February 2024 figure, but 20.7% or 33.1 points lower than the record figure of March 2022. The price indices for sugar, dairy products and vegetable oils increased the most, while the meat price index remained stable.
The FAO Cereal Price Index rose 0.7% from January to 112.6 points, down 1.1% from February 2024. Export prices for wheat rose amid reduced supply from the Russian Federation and adverse weather in parts of Europe and the United States. Maize prices rose due to seasonally reduced supply from Brazil, a deteriorating crop in Argentina and strong demand in the United States. Barley and sorghum prices also rose, while the FAO All-Rice Price Index fell 6.8% amid weak demand and strong supply.
The FAO Vegetable Oil Price Index rose 2% to 156 points, up 29.1% from February 2024. Palm oil prices rose amid seasonal production cuts in Southeast Asia and increased demand from the biodiesel industry in Indonesia. Soybean oil rose on strong global demand, while sunflower and rapeseed oil rose on expectations of tighter supplies in the coming months.
The FAO Meat Price Index fell 0.1% from January to 118 points, 4.8% above February 2024. Despite new outbreaks of avian influenza in major producing countries, poultry prices fell on the back of increased supply from Brazil. Pork prices fell on rising inventories in Europe, driven by restrictions in Germany following an outbreak of foot-and-mouth disease. Beef prices, meanwhile, rose on strong demand and reduced production and exports from New Zealand, partly offset by increased supplies from Australia. While beef prices in Brazil fell on strong domestic supply,
The FAO Dairy Price Index rose by 4% to 148.7 points, 23.2% above the February 2024 figure. World cheese prices have been rising for 3 consecutive months, and in February they added 4.7%, prices for whole milk powder increased by 4.4%, for butter by 2.6%, and for skimmed milk powder by 1.8%, against the backdrop of high demand and seasonal production cuts in Oceania.
The FAO Sugar Price Index rose 6.6% to 118.5 points, down 15.8% from February 2024. Sugar prices are rising on forecasts of a reduction in global supply in the 2024/25 MY due to reduced production in India and Brazil. The strengthening of the Brazilian real against the US dollar also contributed to the increase in global sugar prices.
