World food commodity prices eased in October as global cereal production and stocks continued to rise, signaling comfortable supply conditions across key markets, according to the Food and Agriculture Organization of the United Nations (FAO).
The FAO reported Friday that its food price index - which tracks monthly changes in international prices for a basket of commonly traded food commodities - averaged 126.4 points in October, down 1.6% from September. Ample global grain supplies and improved harvest prospects across major producing regions were the main factors behind the decline, the agency said.
The FAO cereal price index fell by 1.3% month-over-month, with broad-based declines across wheat, coarse grains, and rice. Wheat prices dropped 1% percent, reflecting abundant global supplies, favourable production prospects in the southern hemisphere, and steady winter wheat planting across the north. Coarse grain prices declined 1.1%, weighed down by lower values for corn, barley, and sorghum, though losses were partly offset by concerns about reduced corn yields in the European Union and possibly the United States. Rice prices fell more sharply, down 2.5%, amid easing import demand.
According to the FAO, world cereal production in 2025 is forecast to rise by 4.4% to a record 2.99 billion tonnes, with output increases expected across all major cereals. Global cereal stocks are projected to expand 5.7% to 916.3 million tonnes, pushing the global stocks-to-use ratio to just over 31%, the highest since 2017-18.
While most food commodity indices moved lower, the FAO vegetable oil price Index bucked the trend, rising 0.9% in October to 169.4 points, its highest since July 2022. Gains were driven by higher prices for palm, rapeseed, soy, and sunflower oils. Palm oil prices rebounded as Indonesia’s planned 2026 biodiesel mandate raised expectations of tighter exportable supplies. Sunflower oil continued its four-month rally amid harvest delays and cautious farmer selling in the Black Sea region. Rapeseed oil prices rose on tight EU supplies, while soy oil strengthened on higher domestic demand in Brazil and the US, the FAO said.
Meanwhile, the meat price index dropped 2%, led by sharp declines in hog and poultry prices, though beef continued to firm on solid Australian exports.
The dairy index fell 3.4%, reflecting lower butter and milk powder prices amid strong EU and New Zealand supplies.
The sugar price index declined 5.3% to its lowest level since December 2020, pressured by robust Brazilian production, larger expected crops in Thailand and India, and lower crude oil prices reduced biofuel demand.
