World food commodity prices fell slightly in September, as a new high in meat values was offset by month-over-month declines in most other categories, including both cereals and vegetable oils.
The Food and Agriculture Organization of the United Nations on Friday reported that its food price index – which measures the monthly changes in the international prices of a set of globally-traded food commodities – averaged 128.8 points in September. That is down slightly from the revised August level of 129.7 points but still 3.4% above the same month last year.
The FAO cereal price index slipped 0.6% from August, averaging 105 points. World wheat prices fell for the third straight month as large harvests in Russia, Europe and North America, combined with weak demand, kept values under pressure. Corn also declined on forecasts of abundant supplies from Brazil and the US, while Argentina’s temporary suspension of grain export taxes added further downward pressure. Barley and sorghum bucked the trend, with barley marking a third consecutive monthly gain. Rice prices eased by 0.5%.
The vegetable oil price index also showed an incremental decline, easing 0.7% from August to average167.9 points in September - still 18% higher than a year earlier. Palm oil prices slipped as Malaysian stockpiles reached a 20-month high, while soybean oil values weakened amid elevated Argentine supplies following the suspension of export taxes on soybeans and derived products. In contrast, sunflower oil values rose on continued tightness in the Black Sea region, and rapeseed oil prices strengthened in Europe on supply constraints.
The standout was meat, with the FAO meat price index climbing 0.7% from August to a record 127.8 points, 6.6% above year-earlier levels. Beef prices surged to all-time highs, driven by strong US demand and limited domestic supply that spurred imports, particularly from Australia. Brazilian beef values also firmed, despite reduced access to the US market due to tariffs, as global demand remained strong. Sheep meat prices advanced on tight Oceania supplies, while pork and poultry prices stayed broadly steady.
Meanwhile, the FAO Dairy Price Index fell 2.6%, its third monthly decline, weighed down by weaker butter and milk powder demand, while cheese held mostly steady. The Sugar Price Index slid 4.1% to its lowest since March 2021 on stronger production prospects in Brazil, India, and Thailand.
