FAO Food Price Index Falls 1.2% to 133.9 Points in October
Key Facts
The United Nations Food and Agriculture Organization (FAO) released its October reading of the Food Price Index on November 6, at 133.9 points, down 1.6 points, or 1.2%, from the revised September reading. The decline followed gains in some food components, as grain, meat and dairy indexes fell while sugar and vegetable oils rose. Year on year, the index remained 7.5 points, or 5.9%, above its level in October 2025. It was still 26.3 points, or 16.4%, below the peak recorded in March 2022. The index measures monthly changes in international prices for a basket of food commodities.
The grain index was the largest source of pressure on the overall reading, coming in at 116.8 points in October, down 5.5 points, or 4.5%, from September. It also fell 13.1 points, or 12.6%, compared with October last year. The FAO said global wheat prices fell after four consecutive months of gains, as international demand weakened and production prospects improved, particularly in Argentina. Expectations of eased restrictions on export flows through the Black Sea also weighed on prices. However, ongoing logistical disruptions in the region limited the decline.
Corn prices fell after reaching a three-year high in September. The FAO attributed the decline to harvest pressure in the United States, expectations of ample supplies from major exporters in South America, and renewed prospects for easing tensions in the Black Sea region. Vegetable oils moved differently from grains, with the index at 199.2 points, up 0.3% from September. Higher soybean and sunflower oil prices more than offset a decline in rapeseed oil prices, while palm oil prices were broadly stable. The divergence between the two groups shows that the overall index’s decline did not extend to all food commodities in the same month.
The meat index stood at 125.5 points, down 1.2% from September, as pork, sheep and bovine meat prices fell and poultry prices were largely stable. The index remained slightly above its level a year earlier, according to the FAO. The dairy index also fell, to 117.8 points, down 1.1% month on month. The organization said ample supply and weak demand, particularly in the European Union, weighed on butter and cheese prices. Grain, meat and dairy therefore contributed to the monthly decline, despite gains in the sugar and vegetable oils indexes.
Sugar posted the sharpest increase among the groups cited, with its index rising to 121.3 points, up 6.6% from September and 28.8% from October 2025. The index recorded its fourth consecutive monthly increase, reaching its highest level since December 2024. The FAO attributed the rise mainly to rains that disrupted sugarcane harvesting and processing in Brazil. The trend highlights continued price pressure in some commodities even as the overall Food Price Index fell in October. The overall index comprises five sub-indexes weighted according to each group’s average export shares during 2014–2016.
In separate forecasts, the FAO said global rice production is on track to decline for the first time in four seasons, falling 2.5% to 552 million tonnes in 2026. It cited weak producer margins and weather associated with El Niño among the factors behind the decline. It also forecast that global trade in cereals would contract by 17.4 million tonnes, or 3.3%, to 507.7 million tonnes in the 2026/27 season. A decline in wheat trade is expected to drive the contraction, with a drop of 18.1 million tonnes, or 8.6%. The FAO will publish its broader analysis of grain and major food commodity markets in its Food Outlook report on November 19, while the next monthly price index reading is due on December 4, 2026.