Global food prices rebound in February on vegetable oil demand

Global food prices spiked in February, the first time in five months on the back of rising vegetable oil demand and logistical disruptions within the Russian Federation and the wider Black Sea region, affecting cereal prices.

This is according to a new report by the Food and Agriculture Organisation (FAO) released on Friday. The Food Price Index tracks monthly changes in the international prices of a set of globally traded food commodities.

In the review period, food prices averaged 125.3 points, up 0.9 percent from its revised January level, while still one percent below its level a year earlier.

Prices of vegetable oil rose the highest in the review period by 3.3 percent, reaching its highest level since June 2022.

The spike was due to a rise in international palm oil prices amid firm global import demand and seasonally lower outputs in Southeast Asia, while world soyoil prices increased on expectations of supportive biofuel policy measures in the United States of America.

Also, cereal benchmark saw a 1.1 percent rise from January, driven primarily by higher world wheat prices reflecting reports of frosts in parts of Europe and the United States of America, as well as ongoing logistical disruptions within the Russian Federation and the wider Black Sea region.

“International coarse grain prices also posted a modest increase, while the FAO rice index edged up by 0.4 percent from the previous month, supported by sustained demand for basmati and Japonica varieties,” the report noted.

The FAO further reports that meat prices increased by roughly 0.8 percent from January, as ovine meat prices reached an all-time high and bovine meat prices rose on the back of strong import demand from China and the U.S.

Meanwhile, global dairy prices declined by 1.2 percent, driven primarily by lower cheese prices.

“International quotations for skim and whole milk powders increased notably amid strengthening import demand from North Africa,” FAO noted.

Sugar prices also fell sharply by 4.1 percent, amid expectations of ample global supplies in the current season.

Feyishola Jaiyesimi

Feyishola Jaiyesimi is a journalist at BusinessDay Media with over two years reporting experience. She began her journalism career as an agricultural reporter and now covers the energy sector, including oil, gas, electricity, environment, and renewables. She has been selected for professional training by the US Consulate, Lagos. She is a 2025 Dataphyte Biodiversity Reporting Fellow. Feyishola holds a bachelor’s degree in Zoology and Environmental Biology from Ekiti State University.