Commodities Buzz: FAO Food Price Index marks second consecutive monthly decline

The FAO Food Price Index (FFPI) averaged 126.4 points in October 2025, down 2.1 points (1.6 percent) from the revised September level of 128.5 points, marking its second consecutive monthly decline. Lower price indices for cereals, dairy products, meat and sugar outweighed an increase in the vegetable oil index. Overall, the FFPI was slightly below its October 2024 level and remained 33.8 points (21.1 percent) lower than its peak in March 2022.

The FAO Cereal Price Index averaged 103.6 points in October, down 1.3 points (1.3 percent) from September and 10.9 points (9.5 percent) below its level a year ago. Price indices of all the major cereals declined month-on-month. The wheat price index fell by 1.0 percent, mostly reflecting ample global supplies, favourable production prospects in the southern hemisphere where harvesting is underway, and steady progress of winter wheat planting across the northern hemisphere. The coarse grain index declined by 1.1 percent in October, with lower quotations for barley, maize and sorghum.

The FAO Vegetable Oil Price Index averaged 169.4 points in October, up 1.5 points (0.9 percent) from September and reaching its highest level since July 2022. The increase reflected higher quotations for palm, rapeseed, soy and sunflower oils. International palm oil prices rebounded slightly after easing in the previous month, supported by expectations of tighter exportable supplies following Indonesia’s planned increase in biodiesel blending mandates in 2026, and despite higher-than-expected production in Malaysia. World sunflower oil prices rose for the fourth consecutive month in October.

The FAO Meat Price Index averaged 125.0 points in October, down 2.5 points (2.0 percent) from September but still 5.8 points (4.8 percent) above its level a year ago.

The FAO Dairy Price Index averaged 142.2 points in October 2025, down 5.0 points (3.4 percent) from September, marking the fourth consecutive monthly decline. Despite this decline, the index remained 2.7 percent above its level a year earlier. All sub-indices dropped – butter fell by 6.5 percent, whole milk powder by 6.0 percent, skim milk powder by 4.0 percent, and cheese by 1.5 percent.

The FAO Sugar Price Index averaged 94.1 points in October, down 5.3 points (5.3 percent) from September. This marks the second consecutive monthly decline, pushing the index 35.4 points (27.4 percent) below its level a year ago and to its lowest level since December 2020. The drop was mainly driven by expectations of ample global sugar supplies.

Powered by Commodity Insights