01 March 2018•Update: 01 March 2018
By Tuba Sahin
ANKARA
Global food prices increased in February, according to the UN Food and Agriculture Organization (FAO) on Thursday.
The food price index averaged 170.8 points in February, up 1.1 percent compared with January, the FAO said in a statement.
However, the index decreased 2.7 percent compared to February 2017, the statement read.
The FAO Food Price Index is a trade-weighted index that tracks international market prices of five major food commodity groups.
The dairy price index increased 6.2 percent monthly in February as butter, cheese and milk powder prices went up, it said.
"Strong global demand coupled with lower than expected milk output in New Zealand drove the change," said the FAO.
The cereal price index rose by 2.5 percent, posting a second consecutive notable monthly rise, due to unfavorable weather conditions in the U.S and Argentina.
The meat price index, on the other hand, remained stable as poultry meat prices, which fell for the fourth month in a row, offset a rise in bovine meat price quotations.
In February, the vegetable oil price index dropped 3.1 percent and reached its lowest level in 19 months.
"Palm oil prices dropped the most, reflecting rising inventories in Malaysia and Indonesia, while expectations of record soy crushings in the U.S. weighed on soybean quotations," the FAO said.
The sugar price index also slipped 3.4 percent month-on-month in February, reaching a two-year low.
"FAO also lowered its projections for worldwide wheat harvests this year, while noting that inventory levels are poised to hit a record high," the statement read.
