FAO: food prices fall, but sugar becomes more expensive

International food commodity prices moved in different directions in October. Weaker import demand pushed down prices across several commodity groups. Sugar prices rose again, as did those of some vegetable oils. Trends also varied within the dairy and cereal categories. The decline in the FAO index therefore masks clear differences in price movements.

The FAO Food Price Index stood at 133.9 points. That is 1.2 percent below the revised September figure. However, the overall index remained 5.9 percent above its October 2025 level. The FAO uses this index to track international prices of globally traded food commodities.

Sugar prices continue to rise

The sugar price index rose for the fourth consecutive month. It increased by 6.6 percent compared with September. This brought the index to its highest level since December 2024. The year-on-year increase was 28.8 percent.

Rain disrupted sugarcane harvesting and processing in Brazil’s Center-South region. There were also concerns about sugar production in the 2026/27 season. These concerned the outlook for India, the European Union and Thailand.

Lower cereal and dairy prices

The cereal price index fell by 4.5 percent compared with September. Wheat prices declined after four consecutive months of increases. International demand remained weak and production prospects improved, particularly in Argentina.

Corn prices also fell, partly due to increased supply during the US harvest. The rice price index, by contrast, rose by 1.6 percent compared with September. Adverse weather and rising costs pushed rice prices higher. Harvest delays in some exporting countries added to this upward pressure.

The dairy price index fell by 1.1 percent compared with September. Ample supplies and limited buying interest pushed down butter and cheese prices. These declines outweighed further increases in milk powder prices.

Meat prices fall, vegetable oil prices rise

The meat price index fell by 1.2 percent compared with September. Pork, sheep meat and beef prices declined; poultry prices remained broadly stable.

The vegetable oil price index, by contrast, rose by 0.3 percent. Soybean oil prices reached their highest level since late 2022. Continued strong demand from the biofuel sector contributed to the increase. Supply from South America also declined seasonally.

Fao.org