Demand and weather drives up global food prices

Global food prices in February rose to their highest level since mid-2012 as a result of unfavourable weather and increased demand, the United Nations (UN) food agency has reported. 
In a press statement, the UN Food and Agriculture Organisation (FAO) said its most recent Food Price Index - which measures the monthly change in international prices of a basket of 55 food commodities, including meat, dairy, sugar, and cereals - averaged 208.1 points. That is about 5.2 points, or 2.6 percent higher than the slightly revised index for January. “This month's increase follows a long period of declining food prices in general. But it’s too early to say if this is a true reversal of the trend,” said Concepción Calpe, FAO senior economist.
“The weather is probably a major force driving up prices for certain commodities like sugar or wheat, but brisk demand is also an important factor underpinning maize, dairy and oil prices,”  Calpe added.
The Rome-based agency also noted a spike in wheat and corn prices which it attributed to recent developments in Ukraine, “though the February increase in the Index cannot be entirely attributed to those events.”