Key Moments
- The FAO Food Price Index slipped to 133.9 points in October from a revised 135.6 in September.
- Cereal prices dropped 4.5% month on month in October and were 12.6% lower than a year earlier.
- Sugar prices climbed 6.6% in October, standing 28.8% above their year-earlier level.
Headline Index Moves Lower in October
PARIS, Nov 6 (Reuters) – Global food prices edged down in October as softer import demand weighed on several key categories, including cereals, dairy, and meat, while overall price levels remained nearly 6% above those seen a year earlier, according to data from the United Nations’ Food and Agriculture Organization (FAO) released on Friday.
The FAO Food Price Index, which measures monthly movements in international prices for a basket of food commodities, averaged 133.9 points in October, easing from a revised 135.6 points in September.
On a year-on-year basis, the index stood 5.9% higher than in the same month a year ago, although it remained 16.4% below the peak reached in March 2022.
Cereals Slide on Weak Demand and Better Supply Prospects
FAO’s cereal price index fell 4.5% from September and was 12.6% lower than a year earlier, as wheat and maize quotations moved lower.
Wheat prices retreated amid weaker import demand and improved production prospects, particularly in Argentina.
“Expectations of easing constraints on Black Sea export flows added to the downward pressure on prices, although continued disruptions to Black Sea logistics limited the decline,” FAO said in a statement.
Maize prices also moved down after hitting a three-year high in September, pressured by the ongoing harvest in the United States, expectations of ample supplies in South America, and renewed prospects of easing tensions in the Black Sea region.
Mixed Picture Across Major Food Categories
Vegetable oil prices inched up 0.3% in October, as gains in soybean and sunflower oil more than compensated for a decline in rapeseed oil prices.
Sugar prices rose 6.6%, marking a fourth consecutive monthly increase and reaching their highest level since December 2024, after rainfall disrupted harvesting operations in Brazil. Sugar prices were 28.8% higher than a year earlier.
The dairy price index slipped 1.1% in October. Declines in butter and cheese prices, driven by ample supplies and subdued demand, outweighed increases recorded in milk powder.
The meat price index declined 1.2% on the month, yet remained slightly above its level of a year earlier, as prices for pig, ovine, and bovine meat all moved lower.
Index Components Overview
| Category | Monthly Change | Year-on-Year Change | Key Drivers |
|---|---|---|---|
| FAO Food Price Index | Down from 135.6 to 133.9 | +5.9% | Broad-based declines in cereals, dairy, and meat |
| Cereal Price Index | -4.5% | -12.6% | Lower wheat and maize quotations; weak import demand; improved production prospects |
| Vegetable Oils | +0.3% | Not stated | Higher soybean and sunflower oil prices outweigh weaker rapeseed oil |
| Sugar | +6.6% | +28.8% | Rainfall affecting Brazilian harvest; fourth consecutive monthly gain |
| Dairy | -1.1% | Not stated | Lower butter and cheese prices on ample supplies and subdued demand; milk powder up |
| Meat | -1.2% | Slightly above year-earlier level | Declines in pig, ovine, and bovine meat prices |
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