Global food prices fell 1.2 percent in October, but still nearly 6 percent higher than last year

Global food prices fell in October, driven down by lower prices for cereals, dairy products and meat, even as sugar and vegetable oil became more expensive. The information comes from the latest report of the United Nations Food and Agriculture Organization (FAO).

According to the agency, the international food price index fell 1.2 percent in October compared with the previous month. But prices are still about 6 percent higher than at the same time last year.

The FAO report, published on Friday, said the FAO Food Price Index, which measures the state of international food prices, averaged 133.9 points in October. The index was higher in September.

Although the index fell on a monthly basis, it was 5.9 percent higher than in October 2025. It remains 16.4 percent below the record peak reached in March 2022, when the Russia-Ukraine war pushed prices up.

The report showed mixed trends across food categories. The cereal price index fell 4.5 percent in October. Falling wheat and maize prices had a major effect on the overall index for the sector.

After rising for four consecutive months, international wheat prices turned downward. The fall came as prospects of higher production in Argentina and weaker global demand weighed on the wheat market.

Maize prices also fell. Expectations of a good harvest in the United States and a positive supply outlook in South American countries contributed to the decline.

But not every cereal became cheaper. International rice prices rose 1.6 percent in October because of adverse weather and delays in harvesting.

Sugar, by contrast, saw a sharp price rise. Sugar prices rose 6.6 percent in October from the previous month, the highest since December 2024. Rain in Brazil disrupted sugarcane harvesting and processing, while concerns over production in India, Thailand and the European Union put upward pressure on the sugar market.

Vegetable oil prices also moved up. Higher palm and sunflower oil prices lifted the overall vegetable oil price index by 0.3 percent in October. But prices fell in two other important food categories. Ample supply and relatively weak demand pushed the dairy price index down 1.1 percent, while the meat price index fell 1.2 percent over the same period.

In a separate report, the FAO gave its forecast for global cereal production, use and trade in 2026. The agency estimates that total world cereal production this year could reach 2.999 billion tonnes. That would not be an all-time record, but it would be the second-highest production in history.

The outlook for rice is different, the agency warned. The FAO forecasts that world rice production could fall 2.5 percent in 2026 to 552 million tonnes, after four consecutive seasons of growth, because of the El Nino effect and adverse weather.

The FAO also said that total world cereal use in the 2026-27 season could rise slightly to 2.971 billion tonnes. International cereal trade, however, could shrink 3.3 percent as logistical problems disrupt wheat supplies.

Overall, although the global food price index fell in October, trends differed by product. Falling wheat and maize prices pulled the index down, while sugar, palm and sunflower oil became more expensive. At the same time, the forecast of lower rice production and a possible contraction in international cereal trade could put new pressure on global food supply in the future.