Global food prices ease 1.2% in October as cereals, dairy and meat become cheaper: FAO

Global food prices declined in October as falling international prices of cereals, dairy products and meat outweighed a sharp increase in sugar prices, according to the latest data released by the Food and Agriculture Organization of the United Nations (FAO). Softer demand and expectations of improved supplies of key agricultural commodities contributed to the monthly decline.

The FAO Food Price Index (FFPI), which tracks changes in international prices of a basket of widely traded food commodities, averaged 133.9 points in October 2026. This was 1.6 points, or 1.2 per cent, lower than the revised September level. However, the index remained 5.9 per cent above its October 2025 reading, indicating that global food prices continue to be relatively elevated despite the latest correction. It was also 16.4 per cent below its all-time high recorded in March 2022.

Cereals were among the biggest contributors to the October decline, with the FAO Cereal Price Index falling 4.5 per cent from the previous month. International wheat prices reversed their four-month upward trajectory as weaker buying interest and improved production prospects in Argentina eased supply concerns.

Expectations of a possible relaxation in restrictions on Black Sea export shipments also weighed on wheat prices, although logistical difficulties in the region limited the decline. Maize prices softened as harvesting progressed in the United States and supply expectations improved for major South American exporters.

Rice, however, moved in the opposite direction. The FAO All Rice Price Index increased 1.6 per cent during October, supported by harvesting delays in some exporting nations and unfavourable weather conditions.

The decline in global food prices extended to dairy and meat products. The FAO Dairy Price Index fell 1.1 per cent in October, primarily due to lower international quotations for butter and cheese amid comfortable supplies and subdued demand. These declines more than offset an increase in milk powder prices.

The FAO Meat Price Index also registered a monthly decline of 1.2 per cent. Prices of pig, sheep and cattle meat weakened, while poultry prices remained largely unchanged. Despite the correction, the meat price index was still slightly higher than its level in October last year.

Sugar emerged as an exception to the broader downward movement in food prices. The FAO Sugar Price Index surged 6.6 per cent in October, extending its gains for a fourth consecutive month. It was also 28.8 per cent higher than a year earlier and reached its highest level since December 2024.

Disruptions caused by rainfall during sugarcane harvesting and crushing operations in Brazil's Centre-South region, one of the world's major sugar-producing areas, contributed to the increase. Concerns over production prospects in India, the European Union and Thailand for the 2026/27 season added to the upward pressure.

The FAO Vegetable Oil Price Index posted a modest increase of 0.3 per cent in October. Higher international prices of soybean and sunflower oils offset weaker rapeseed oil quotations, keeping the overall index marginally above its September level.

In its separate assessment of agricultural markets, FAO projected global cereal production at 2,999 million tonnes in 2026. While this would represent the second-highest production level on record, it would fall short of the record output achieved in 2025.

Meanwhile, international cereal trade is expected to weaken in the 2026/27 marketing season. Global trade volumes are forecast to decline 3.3 per cent to 507.7 million tonnes, with wheat trade expected to register a sharper contraction of 8.6 per cent.