The FAO Dairy Price Index increased by 1.1 percent

The benchmark for world food commodity prices declined for the seventh consecutive month in February, as lower international quotations for all major cereals more than offset rising prices of sugar and meat, the Food and Agriculture Organization of the United Nations (FAO) reported Friday.

The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 117.3 points in February, down 0.7 percent from January and 10.5 percent from the same month a year ago.

The FAO Dairy Price Index increased by 1.1 percent, led by higher import demand from Asian buyers for butter. Prices of milk powders and cheese also rose marginally.

The FAO Dairy Price Index averaged 120.0 points in February, up 1.3 points (1.1 percent) from January, but stood 18.6 points (13.4 percent) below its value in the corresponding month last year. In February, world butter prices rose the most, underpinned by higher import demand from Asian buyers and seasonally declining milk production in Oceania. Meanwhile, whole milk powder prices continued to rise, albeit slowly, principally due to increased import demand, especially from China, which was partially offset by a drop in the European Union prices. Skim milk powder prices remained stable, as an increase in Oceania prices was nearly offset by lower European Union prices, largely reflecting lower import demand from the region due to higher shipping costs and transport delays stemming from the conflict in the Red Sea. International cheese prices also increased marginally, as buying interest from Asia turned positive amidst lower inventories in the European Union.