Global Food Price Index Rises for Third Straight Month; Vegetable Oils Jump 5.9%

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[Financial News] The FAO Food Price Index (FFPI) rose for a third consecutive month. Analysts said higher prices for grains, vegetable oils and meat, driven by instability in the Middle East and rising global oil prices, pushed up the overall index.
According to the Ministry of Agriculture, Food and Rural Affairs (MAFRA) on the 9th, last month’s FFPI published by the Food and Agriculture Organization of the United Nations (FAO) stood at 130.7, up 1.6% from the previous month. The index uses the average price level for 2014-2016 as 100.
The FFPI had fallen for five straight months through January, but it rebounded in February and has continued to climb for three months. Recent volatility in global commodity prices and Middle East risks appear to have had a combined effect.
The grain price index rose 0.8% from the previous month to 111.3. Wheat prices increased on concerns over drought in parts of the United States, insufficient rainfall in Australia, and higher fertilizer prices due to Middle East tensions. Expectations of a decline in wheat planting acreage next year also supported the increase.
Corn prices also rose on seasonal supply declines in Brazil, dry weather in the United States, and stronger ethanol demand as global oil prices climbed. The rice price index increased 1.9% from the previous month as higher crude oil prices raised production and distribution costs.
The vegetable oil price index surged 5.9% from the previous month to 193.9. Prices for palm oil, soybean oil, sunflower oil and rapeseed oil all rose. Palm oil extended its gains for a fifth straight month on expectations of stronger biofuel demand, while sunflower oil reflected concerns over supply disruptions in the Black Sea region.
The meat price index rose 1.2% from the previous month to 129.4. Beef prices hit a record high on reduced slaughter availability in Brazil, while pork prices also increased as seasonal demand grew, especially in the European Union (EU).
By contrast, the dairy price index fell 1.1% to 119.6. Butter and cheese prices declined on increased milk supplies in the EU and Oceania.
The sugar price index dropped 4.7% from the previous month to 88.5. Improved production outlooks in major producers such as China and Thailand, along with the start of Brazil’s new harvest, helped stabilize prices.
Meanwhile, the FAO forecast that global grain production in 2025-2026 will reach 3.0398 billion tons, up 6.0% from a year earlier. It also projected grain consumption during the same period at 2.9462 billion tons, up 2.5%.
en1302@fnnews.com Jang In-seo Reporter