Global food prices fell by 1.2% in October, as lower prices for cereals, dairy products and meat outweighed increases in sugar and vegetable oil prices. The Food and Agriculture Organization of the United Nations (FAO) index averaged 133.9 points, compared with a revised 135.6 points in September. The data was released by the FAO.
Despite the monthly decline, the index remains 5.9% above its October 2025 level. It is also 16.4% below the record value recorded in March 2022. The indicator tracks international prices for a basket of food commodities traded on global markets, rather than prices in shops directly.
Cereal prices fall, with rice the exception
The cereal price index fell by 4.5% in October. Wheat prices declined after four consecutive months of increases due to weak international demand and improved production prospects, particularly in Argentina.
In the case of maize, harvesting in the United States and expectations of abundant supplies from South America put pressure on prices. At the same time, rice prices rose by 1.6% due to delays in harvesting and adverse weather conditions.
“Expectations of an easing of export restrictions through the Black Sea put additional downward pressure on prices, although ongoing logistical disruptions limited the decline,” the FAO said.Sugar prices rise for a fourth consecutive month
Sugar prices rose by 6.6%, reaching their highest level since December 2024. This was due to interruptions to harvesting in Brazil caused by rainfall, as well as concerns about production in India, Thailand and the European Union.
Vegetable oil prices increased by 0.3%, with higher soybean and sunflower oil prices offsetting the decline in rapeseed oil prices. Dairy prices fell by 1.1% due to increased supplies of butter and cheese and weaker demand. Meat prices declined by 1.2%.
FAO expects the second-largest cereal harvest
In a separate forecast, the FAO expects global cereal production in 2026 to reach 2.999 billion tonnes. This would be the second-highest result in history, after the record harvest of the previous year.
Rice production, however, is expected to shrink by 2.5% to 552 million tonnes. According to the FAO, the reasons are lower profitability for producers and adverse weather conditions associated with the El Niño phenomenon.
Global cereal consumption in the 2026/2027 season is forecast to increase by 0.2% to 2.971 billion tonnes. Grain trade is expected to decrease by 3.3% to 507.7 million tonnes, mainly due to lower wheat supplies and logistical constraints.
Sources: news.bg, investing.com