Global Food Prices Fall for Third Straight Month in November: FAO

Global food commodity prices declined for the third consecutive month in November, driven by lower prices of dairy, meat, sugar and vegetable oils, even as cereals registered a slight increase, according to the Food and Agriculture Organization (FAO).

The FAO Food Price Index averaged 125.1 points in November 2025, down 1.2 percent from October and 2.1 percent lower than a year ago. The index remains nearly 22 percent below the peak recorded in March 2022.

Cereal prices were the only major category to rise, with the FAO Cereal Price Index increasing by 1.8 percent to 105.5 points. Despite generally favourable global harvest prospects, wheat prices rose due to potential Chinese buying from the United States, geopolitical concerns in the Black Sea region and expectations of lower plantings in Russia. Maize prices also strengthened, supported by firm demand for Brazilian supplies and weather-related delays in South American fieldwork. Barley and sorghum prices increased, influenced by higher soybean prices, while global rice prices fell 1.5 percent amid strong harvests and weak demand.

Vegetable oil prices dropped to a five-month low, with the index declining 2.6 percent from October. Palm oil prices fell sharply due to higher-than-expected output in Malaysia, while rapeseed and sunflower oil prices eased on improved global supply prospects. Soyoil prices inched up slightly, backed by robust biodiesel demand, particularly in Brazil, although lower crude oil prices contributed to the overall decline in vegetable oils.

Meat prices fell modestly, with the index down 0.8 percent from October. Poultry and pig meat prices declined due to abundant supplies and subdued Chinese demand following new import duties. Bovine meat prices held steady as tariff removal by the United States moderated upward pressure on Australian exports, while ovine meat prices rose on firm global import demand.

The FAO Dairy Price Index posted its fifth monthly decline, falling 3.1 percent from October. Ample milk production across major producing regions, large inventories in the European Union and higher seasonal output in New Zealand weighed on prices. All major dairy commodities registered declines, with butter and whole milk powder falling the most.

Sugar prices recorded the steepest drop among all categories, falling 5.9 percent to reach their lowest level since late 2020 for the second consecutive month. Strong production in Brazil, positive early-season harvest trends in India and favourable crop prospects in Thailand supported expectations of ample global supply, pushing prices downward.

Overall, FAO said the sustained decline reflects improved global supply conditions across several key commodities, easing pressures that had driven prices to historic highs in recent years.