New Delhi [India], November 9 : Global food commodity prices declined 1.2 per cent in October, supported by lower prices of cereals, dairy products and meat amid weaker import demand, according to data released by the Food and Agriculture Organization of the United Nations (FAO).
The FAO Food Price Index (FFPI), which tracks monthly changes in international prices of a basket of globally traded food commodities, averaged 133.9 points in October 2026, down 1.6 points or 1.2 per cent from its revised September level.
However, despite the monthly decline, the index remained 5.9 per cent higher than its level a year ago, while staying 16.4 per cent below its peak in March 2022.
The decline was mainly driven by lower cereal, dairy and meat prices, which more than offset a sharp increase in sugar prices and a marginal rise in vegetable oil prices.
FAO said “The FAO Cereal Price Index fell 4.5 per cent from September. World wheat prices declined following four consecutive monthly increases, largely reflecting subdued international demand and an improving production outlook, particularly in Argentina”.
Expectations of easing restrictions on Black Sea export flows also added to the downward pressure on wheat prices. However, continued disruptions to logistics in the region limited the decline.
International maize prices also eased after reaching a three-year high in September, as harvesting in the United States and expectations of ample supplies from major South American exporters weighed on prices.
In contrast, the FAO All Rice Price Index increased 1.6 per cent in October, as harvest delays in some exporting countries and adverse weather conditions added to price pressures.
The FAO Dairy Price Index declined 1.1 per cent from September, with lower international butter and cheese prices amid ample supplies and subdued buying interest. These declines more than offset further increases in milk powder prices.
The FAO Meat Price Index also fell 1.2 per cent during the month, although it remained slightly above its year-earlier level. Prices of pig, ovine and bovine meats declined, while poultry meat prices remained broadly stable.
The FAO Vegetable Oil Price Index, meanwhile, increased marginally by 0.3 per cent, as higher soybean and sunflower oil prices offset lower rapeseed oil quotations.
Sugar prices moved in the opposite direction, with the FAO Sugar Price Index rising 6.6 per cent from September and 28.8 per cent from a year ago. It marked its fourth consecutive monthly increase and reached its highest level since December 2024.
The FAO attributed the increase mainly to rainfall-related disruptions to sugarcane harvesting and crushing operations in Brazil's key Centre-South region, along with concerns over production prospects in India, the European Union and Thailand during the 2026/27 season.
Separately, FAO forecast global cereal production at 2,999 million tonnes in 2026, which would be the second-highest level on record, although below the record level of 2025.
Global cereal trade in 2026/27 is forecast to decline 3.3 per cent to 507.7 million tonnes, mainly due to an expected 8.6 per cent fall in wheat trade.