Commodities Buzz: FAO food price index up 1% on year, still down 22% from record high
The FAO Food Price Index (FFPI) averaged 125.3 points in February 2026, up 1.1 points (0.9 percent) from its revised January level. Increases in the price indices for cereals, meats and vegetable oils more than offset declines in dairy and sugar, resulting in the first rise of the index after five consecutive monthly decreases. Compared to historical levels, the FFPI stood 1.3 points (1.0 percent) below its value a year ago and as much as 34.9 points (21.8 percent) down from the peak reached in March 2022.
The FAO Cereal Price Index averaged 108.6 points in February, up 1.1 points (1.1 percent) from January but still 4.0 points (3.5 percent) below its level a year earlier. World wheat prices rose by 1.8 percent in February, underpinned by reports of frosts and heightened winterkill risks in parts of Europe and the United States of America. Logistical disruptions in the Russian Federation and continuing tensions in the Black Sea region also contributed to the increase. International coarse grain prices also rose, albeit more moderately.
The FAO Vegetable Oil Price Index averaged 174.2 points in February, up 5.6 points (3.3 percent) month-on-month, reaching the highest level since June 2022. The increase was driven by higher prices of palm, soy and rapeseed oils, more than offsetting lower sunflower oil quotations. International palm oil prices rose for the third consecutive month, underpinned by firm global import demand and seasonally lower outputs in Southeast Asia.
The FAO Meat Price Index averaged 126.2 points in February, up 1.0 points (0.8 percent) from its revised January value and 9.4 points (8.0 percent) above its level a year earlier. The increase was largely driven by higher world bovine and ovine meat prices, while poultry and pig meat quotations registered only marginal upticks.
The FAO Dairy Price Index averaged 119.3 points in February, down 1.4 points (1.2 percent) from January and 28.4 points (19.2 percent) below its level a year earlier. The February decline extends the downward trend that began in July 2025. The easing was mainly driven by a continued decline in cheese prices, particularly in the European Union, driven by improved milk availability, softer demand from key export markets, and intensified international competition.
The FAO Sugar Price Index averaged 86.2 points in February, down 3.7 points (4.1 percent) from January and as much as 32.4 points (27.3 percent) from a year ago, marking its second consecutive monthly decline and its lowest level since October 2020.
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