Global food prices decline 1.6% in October due to ample supplies: FAO

• FAO expects global cereal production reach all-time high of 2.99B in 2025

ISTANBUL

The UN Food and Agriculture Organization (FAO) reported on Friday that global food prices fell 1.6% in October, owing largely to abundant worldwide supplies.

The organization's Food Price Index, which tracks monthly changes in the international prices of a select group of globally traded food commodities, fell to 126.4 points in October.

This was the index's second consecutive monthly decline, following its drop in September, which was attributed in part to a decline in sugar prices.

The Cereal Price Index fell 1.9% month-on-month due to price declines in grains like wheat and rice. Wheat prices went down 1%, while rice prices dropped 2.5%.

The Sugar Price Index dropped 5.3% in October, hitting its lowest level since December 2020, due to strong production in Brazil, expected production increases in Thailand and India, and lower crude oil prices.

The Dairy Price Index fell 3.4% in October compared to the previous month, driven by lower milk powder and butter prices due to higher exports from the EU and New Zealand.

The Meat Price Index also slipped 2% in October after an eight-month increase. Despite the decline, beef prices continued to rise, driven by strong global demand and higher price offers from Australia.

On the other hand, the Vegetable Oil Price Index was up 0.9% in October, reaching its highest level since July 2022, due to harvest delays in the Black Sea region.

Global cereal production to reach record high

FAO also updated forecasts for global cereal markets, with production expected to climb 4.4% in 2025 to reach 2.99 billion tons, a new record level, with output increases expected across all major cereals, especially in corn and rice.

The organization also said it expects global grain stocks to increase 5.7%, reaching a record high of 916.3 million tons.