The Food and Agriculture Organization (FAO) of the United Nations has reported a decline in global food prices for October 2026, ending three consecutive months of increase. The FAO's food price index decreased by 1.2% compared to September, averaging 133.9 points. This decline is primarily attributed to decreases in the prices of grains, meats, and dairy products. The index had reached its highest level since November 2022 in September, but dropped to 133.9 points in October.
The decline in global food prices is largely driven by a 4.5% decrease in grain prices, which fell to 116.8 points. This decrease is a result of lower global prices for wheat, maize, barley, and sorghum. In contrast, rice prices increased by 1.6% due to delayed harvesting in exporting countries and unfavorable weather conditions. The FAO's data indicates that these fluctuations reflect varying developments in international markets for basic food commodities.
The meat price index also declined by 1.2% in October, reaching 125.5 points. This decrease is mainly due to lower pork prices in the European Union, resulting from abundant supply and weak demand. Additionally, sheep meat prices dropped due to seasonal increases in Australian supplies. Global beef prices experienced a slight decline, while poultry prices remained relatively stable, supported by balanced supply and demand in international markets.
Dairy product prices followed a downward trend, with the price index decreasing by 1.1% to 117.8 points. This decline is attributed to lower global prices for cheese and butter, driven by sufficient supplies, particularly within the European Union. The FAO's data suggests that these changes reflect ongoing adjustments in global dairy markets.
In contrast to the overall decline in food prices, sugar prices continued to rise for the fourth consecutive month, increasing by 6.6% in October to reach 121.3 points. This is the highest level in two years. The FAO attributes this increase to disruptions in sugarcane harvesting and processing in Australia due to weather conditions, as well as concerns about the Indian crop yield. These factors have contributed to upward pressure on global sugar prices.
Vegetable oil prices experienced a slight increase of 0.3% in October, reaching 199.2 points. This is the highest level since June 2022, driven primarily by higher soybean oil prices. The FAO notes that this development is linked to growing demand for soybean oil in biofuel production, combined with reduced seasonal supplies in South America. These factors have maintained upward pressure on vegetable oil prices despite the overall decline in the food price index.
The FAO's report highlights the ongoing variability within global food markets, with not all products experiencing price declines at the same rate. The organization notes that future price developments will depend on several factors, including weather conditions in producing countries, agricultural yields, production costs, and changes in global demand, particularly in energy and biofuel sectors.
Key points
- The FAO's food price index decreased by 1.2% in October, driven by declines in grain, meat, and dairy prices.
- Sugar prices continued to rise for the fourth consecutive month, increasing by 6.6% in October.
- Vegetable oil prices experienced a slight increase of 0.3% in October, driven by higher soybean oil prices.
