ROME, Italy / AsiaWire.IO / – Global food prices declined in October, though they remained 5.9% higher than a year earlier, the Food and Agriculture Organization of the United Nations (FAO) said on Friday. The FAO Food Price Index, which tracks monthly changes in the international prices of a basket of globally traded food commodities, averaged 133.9 points in October. That was down 1.6 points, or 1.2%, from a revised 135.6 points in September. The index stood 16.4% below its March 2022 peak.
Lower prices for cereals, dairy and meat more than offset a sharp rise in sugar and a marginal increase in vegetable oils, FAO said. The cereal price index fell 4.5% from September, as wheat prices dropped after four consecutive monthly gains. Subdued international demand and an improving production outlook in Argentina weighed on wheat. Expectations of easing Black Sea export constraints added pressure, though ongoing logistics disruptions in the region limited the decline.
Maize prices eased after reaching a three-year high in September, pressured by the US harvest and expectations of ample supplies from major South American exporters. Prospects of easing tensions in the Black Sea also weighed on maize. In contrast, the FAO All Rice Price Index rose 1.6%. Harvest delays in some exporting countries, adverse weather and rising costs supported rice prices during the month.
Sugar prices climb for fourth month
The sugar price index jumped 6.6% from September and stood 28.8% above its level a year earlier, reaching its highest point since December 2024. It was the fourth consecutive monthly increase. Rain disrupted cane harvesting and crushing in Brazil’s Centre-South region, while concerns grew over 2026/27 output in India, the European Union and Thailand.
The vegetable oil price index rose 0.3%. Soybean oil prices climbed to their highest level since late 2022, supported by firm demand from the biofuel sector and seasonally declining South American supplies. Sunflower oil rebounded from multi-month lows on tight Black Sea export availability, while rapeseed oil prices fell. The meat index dropped 1.2% as pig, ovine and bovine prices declined, while poultry was broadly stable.
Cereal output to remain near record
The dairy price index fell 1.1%, as butter and cheese prices eased on ample supplies and subdued buying, while milk powder prices rose. In a separate brief, FAO, which has also pushed for climate and food security funding, forecast world cereal production in 2026 at 2,999 million tonnes. That would be below the 2025 record but still the second-highest on record. Rice production is expected to fall 2.5% to 552 million tonnes, the first contraction in four seasons.
World cereal stocks are forecast to rise 1.8% by the close of seasons in 2027, while global cereal trade is expected to shrink 3.3% to 507.7 million tonnes. FAO also said 41 countries need external food assistance, 31 of them in Africa. Conflict remains the main driver of the most severe food insecurity, alongside El Niño weather shocks. Officials have also warned that the Iran war threatens food security in Africa.