Global food prices overall fell in October, largely due to abundant global supplies, according to a benchmark indicator released by the United Nations’ Food and Agriculture Organization (FAO) on Friday.
The FAO Food Price Index, which tracks monthly changes in international prices for a group of globally traded food products, averaged 126.4 points in October, down 1.6 percent from September’s revised level.
The FAO Cereal Price Index fell 1.3 percent from September, with declines recorded for all major grains. The wheat price index decreased by 1.0 percent, the coarse grain price index by 1.1 percent, and the FAO rice price index by 2.5 percent.
The FAO Meat Price Index fell by 2.0 percent during the month, mainly due to sharp declines in pork and chicken prices. Beef prices, however, continued to rise, boosted by higher offers from Australia amid firm global demand.
The FAO Dairy Price Index fell 3.4 percent in October, led by a sharp drop in butter prices due to abundant supply from the European Union and New Zealand. Milk powder prices also fell due to limited import demand and strong export competition.
The FAO Sugar Price Index decreased by 5.3 percent compared to the previous month, reaching the lowest level since December 2020. The drop was caused by strong production trends in Brazil and expected higher yields in Thailand and India. Lower crude oil prices put additional downward pressure on global sugar prices, reducing demand from the biofuels sector.
The FAO Vegetable Oil Price Index bucked the general downward trend, rising 0.9 percent in October, reaching its highest level since July 2022. Palm, canola, soybean and sunflower oil prices have risen, due to a combination of factors including mandatory biofuel quotas and harvest delays in the Black Sea region.
FAO also released updated forecasts for world grain markets on Friday. World cereal production is expected to grow by 4.4 percent in 2025, reaching a record level of 2,990 million tons, with production increasing in all major types of cereal.
According to the new Report on the supply and demand of cereals, the global consumption of cereals in the period 2025/26. could increase by 1.8 percent, compared to the previous year, to 2,929 million tons, mainly thanks to abundant supplies and lower prices. The use of grain for animal feed is expected to grow at a faster rate.
Based on updated forecasts, global grain stocks are forecast to increase by 5.7 percent, reaching a record 916.3 million tons. This would make the global ratio of stocks and consumption in the season 2025/26. could rise to 31.1 percent, the highest level since the 2017/18 season.
FAO’s updated forecast of world trade in cereals in the season 2025/26. indicates an increase of 3.2 percent, to a total of 499.5 million tons. International wheat trade is expected to grow strongly, mainly due to higher imports from Asia, while global rice trade is forecast to decline slightly.
A more detailed analysis of world grain markets will be presented in the next edition of the FAO Food Outlook, which will be published on November 13.
FAO’s Agricultural Market Information System (AMIS) also released its monthly Market Monitor on Friday. In addition to regular market updates, the report provides an overview of the latest trends in staple crop export restrictions. Those trends are showing signs of easing, with particularly significant easing of measures in Argentina, India and the Russian Federation, countries that were among the main beneficiaries of such measures from January 2024 to June 2025.
(Vijesti.ba / FENA)
