In February of this year, there was the first increase in global food prices in the last five months. According to the updated index published by the Food and Agriculture Organization of the United Nations (FAO), the rise in prices for wheat, most vegetable oils, and certain types of meat outweighed the decrease in prices for sugar and cheese.
The FAO index, which tracks international prices for key food commodities, stood at 125.3 points. This is 0.9 percent higher than the January figure, although it is still one percent lower compared to the same period last year.
Price changes for major food categories
Cereals rose in price by an average of 1.1 percent in February. The main reason for the increase in wheat prices was news of frosts in Europe and the USA, as well as ongoing logistics issues in Russia and the Black Sea region. International prices for corn also rose slightly, while the rice index increased by 0.4 percent due to steady demand for basmati and Japanese rice.Vegetable oils showed a growth of 3.3 percent, the highest level since June 2022. The increase in palm oil prices is linked to high global demand and seasonal declines in production in Southeast Asia. Soybean oil prices also rose due to expectations of new biofuel support measures in the USA, while canola oil became more expensive due to forecasts of increased imports from Canada. In contrast, sunflower oil slightly decreased in price due to increased export supplies from Argentina.
As for meat, its price increased by 0.8 percent. The price of lamb reached a record high, and beef became more expensive due to high demand from China and the USA. A slight increase is also observed in the prices of pork and poultry.
Dairy products decreased in price by 1.2 percent, mainly due to falling cheese prices. At the same time, prices for skimmed and whole milk rose due to strong demand from North Africa, the Middle East, and Southeast Asia. Butter prices, on the contrary, increased for the first time since the record level of June 2025.
The price of sugar fell by 4.1 percent over the month and by 27.3 percent compared to February 2025, which is explained by expectations of large global supplies in the current season.
Forecasts for 2026: reduction in wheat sowing
The FAO also published a preliminary forecast for wheat production in 2026. It is expected that the global harvest will decrease by about 3 percent, totaling around 810 million tons, remaining above the average for the last five years.In the European Union, Russia, and the USA, farmers are reducing the area under winter wheat due to falling prices. At the same time, forecasts in India are positive: record sowings are supported by government measures. Positive expectations are also observed in Pakistan and China.
