Global Food Prices Rise 0.9%: Cereals, Vegetable Oils, and Meat Up, Dairy and Sugar Down

International Wheat Prices Rise 1.8%
Palm, Soybean, and Rapeseed Oil Prices All Increase
Lamb Prices Reach Record High as Global Demand Remains Strong

Last month, despite declines in dairy and sugar prices, increases in cereal, vegetable oil, and meat prices led to a 0.9% rise in the global food price index.

According to the Ministry of Agriculture, Food and Rural Affairs, on March 7, the Food and Agriculture Organization (FAO) of the United Nations announced that its Global Food Price Index for February recorded 125.3 points, up 0.9% from the previous month’s 124.2 points. The FAO researches international price trends for 24 items across 95 categories and releases a monthly food price index for five major groups: cereals, vegetable oils, meat, dairy, and sugar.

The Asia Business Daily DB

The cereal price index stood at 108.6 points, up 1.1% from the previous month’s 107.5 points. International wheat prices rose by 1.8%, driven by cold waves and winter damage concerns in parts of Europe and the United States, ongoing logistical disruptions in Russia, and continued tensions in the Black Sea region. Corn prices remained mostly stable, but barley prices stayed strong due to increased demand for Australian barley from China and higher imports of European barley by North Africa. Sorghum prices also rose, supported by strong international demand. The rice price index increased slightly by 0.4%, thanks to steady demand for both Basmati and Japonica rice.

The vegetable oil index rose 3.3% to 174.2 points, compared to 168.6 points in the previous month. Increases in palm oil, soybean oil, and rapeseed oil prices offset the decline in sunflower oil prices. Palm oil prices rose for the third consecutive month due to persistent global import demand and seasonally reduced production in Southeast Asia. Soybean oil prices were pushed up by expectations of stronger U.S. biofuel policies, while rapeseed oil prices increased on forecasts for a recovery in Canadian imports. In contrast, sunflower oil prices edged down slightly as existing price levels were already high, Argentina’s export volumes increased, and import demand softened somewhat; however, prices remained higher than a year ago.

The meat price index rose 0.8% to 126.2 points from 125.2 points a month earlier, led by increases in lamb and beef prices. Lamb prices soared to record-high levels as global demand remained strong while export volumes from major exporting regions such as Oceania were limited. Beef prices were supported by strong import demand from China and the United States, which bolstered export prices in major exporting countries such as Australia and Brazil. Pork prices edged up, reflecting steady global demand that pushed up U.S. quotation prices, while ample supplies from Brazil led to lower export prices, partially offsetting the overall increase. In the European Union, the backlog in slaughtering at the end and beginning of the year eased considerably, leading to price stabilization. Poultry prices saw high import demand in several markets, but ample supply from major producing countries kept price increases limited.

The dairy price index fell 1.2% to 119.3 points from 120.7 points in the previous month, continuing the downward trend that has persisted since July last year. Cheese prices, in particular, dropped significantly, mainly in the EU. This was attributed to a combination of improved raw milk production conditions, weakening demand from major importing countries, and intensified export competition. However, prices for skim milk powder and whole milk powder rose noticeably, as import demand recovered in North Africa, the Middle East, and Southeast Asia, and the seasonal slowdown in milk production in New Zealand became more pronounced. Butter prices, which had been declining since reaching an all-time high in June 2025, turned upward for the first time this month, as the pace of supply growth in Oceania slowed and international demand improved. In the EU, however, abundant cream supplies limited the extent of the price increase.

The sugar price index dropped 4.1% to 86.2 points from 89.8 points in the previous month. The outlook for abundant global supply exerted downward pressure on international sugar prices. In particular, a record-high production forecast in the United States appears to have more than offset upward pressure from downward adjustments to India’s production outlook and seasonal production declines in Brazil.

This content was produced with the assistance of AI translation services.