FAO Food Price Index Falls 1.2% in October as Cereal, Dairy and Meat Prices Decline

The global food price index declined in October 2026, reversing some of the previous month's gains, as lower prices of cereals, dairy products and meat outweighed increases in sugar and vegetable oil prices. According to the Food and Agriculture Organization (FAO), its Food Price Index (FFPI) averaged 133.9 points in October, down 1.2% from the revised September level of 135.5 points.

Despite the monthly decline, the index remained 5.9% higher than its level a year ago. However, it was still 16.4% below its peak of March 2022, when global food prices surged following disruptions in international markets.

The FAO Cereal Price Index recorded the sharpest decline among the major food commodity groups, falling 4.5% month-on-month to 116.8 points. It was also 12.6% lower than in October 2025.

International wheat prices declined after four consecutive months of increases, largely due to subdued global demand and improved production prospects, particularly in Argentina. Expectations of fewer restrictions on Black Sea exports also exerted downward pressure, although logistical disruptions in the region limited the decline.

Maize prices also eased after reaching a three-year high in September. Pressure from harvesting in the United States, expectations of ample supplies in South America and prospects of easing tensions in the Black Sea region contributed to the decline. Barley and sorghum prices also weakened. In contrast, international rice prices increased 1.6% during October, supported by harvest delays, adverse weather conditions and rising production costs in some exporting countries.

The FAO Vegetable Oil Price Index edged up 0.3% to 199.2 points. Higher soybean and sunflower oil prices more than offset the decline in rapeseed oil quotations, while palm oil prices remained largely unchanged. Soybean oil prices reached their highest levels since late 2022, supported by strong demand from the biofuel sector and seasonally lower supplies from South America.

The FAO Meat Price Index declined 1.2% to 125.5 points, although it remained slightly above its year-earlier level. Lower prices of pig, sheep and bovine meat contributed to the decline, while poultry prices remained broadly stable.

The Dairy Price Index fell 1.1% to 117.8 points and was 16.9% below its October 2025 level. Lower butter and cheese prices, amid ample supplies and subdued demand, outweighed gains in milk powder quotations.

In contrast, the FAO Sugar Price Index rose 6.6% to 121.3 points, marking its fourth consecutive monthly increase and its highest level since December 2024. Prices were 28.8% higher than a year earlier. Disruptions to sugarcane harvesting and crushing in Brazil's key Centre-South region due to rainfall were the principal drivers. Concerns over India's sugar production following below-normal and uneven monsoon rainfall, along with expectations of lower output in the European Union and Thailand in 2026-27, added to the upward pressure.