FAO reported the February Food Price Index (inflation adjusted) up almost 15 percent from January. The index saw gains for nine straight months and is now at its highest point since 2011. Every single subindex gained in February, with the strongest gains seen for the oils and sugar price subindexes.
Nearly all subindexes have seen mostly gains in the last six months and are up year-on-year: dairy, up 8 percent YOY; cereals, up 25 percent; oils, up 49 percent; sugar, up 8 percent; meat, down 6 percent.
The sugar subindex rose 6 percent from January on signs of lower availability and the ubiquitous shipping issues plaguing the ag sector and international trade in general. Strength in energy prices, too, could help swing more cane crush in origins like Brazil and India.