By Maytaal Angel

LONDON, March 8 (Reuters) - The United Nations food

agency's world price index fell in February for a seventh

consecutive month as lower prices for all major cereals more

than offset the rising price of sugar and meat.

The Food and Agriculture Organization's price index, which

tracks the most globally traded food commodities, averaged 117.3

points in February, down from a revised 118.2 points the

previous month, the agency said on Friday.

The February reading was the lowest since February 2021.

The cereal index fell 5% month-on-month in February to stand

22.3% below its level a year ago thanks to expectations of large

maize harvests in South America and competitive prices offered

by Ukraine.

Vegetable oil prices fell 1.3% in February from January to

stand 11 percent below year ago levels amid prospects for

abundant South America supplies. Rapeseed and sunflower oil

prices also fell, thanks to ample exports.

The UN agency's sugar index, by contrast, rose 3.2%

month-on-month in February, reflecting persistent concerns over

top producer Brazil's upcoming output and forecast production

declines in Thailand and India.

In a separate report on cereal supply and demand, the agency

raised its estimate for 2023 cereal output by 1.1% from the

previous year to 2,840 million metric tons thanks to increased

maize supplies in Brazil, China and the United States.

Looking ahead to 2024, the UN agency pegged wheat output up

1% from a year earlier at 797 million tons thanks to favourable

weather in North America and top exporter Russia, as well as in

China, India, Iran, Pakistan and Turkey.