Commodities Buzz: FAO Food Price Index averages 127.2 in 2025 down 4.3% on year

The FAO Food Price Index (FFPI) averaged 124.3 points in December 2025, down 0.8 points (0.6 percent) from November, as declines in the price indices for dairy products, meat and vegetable oils more than offset increases in cereals and sugar. The index stood 3.0 points (2.3 percent) below its level one year ago and as much as 35.9 points (22.4 percent) below the peak reached in March 2022. For the year 2025, the index averaged 127.2 points, 5.2 points (4.3 percent) higher than the 2024 average.

The FAO Cereal Price Index averaged 107.3 points in December, up 1.8 points (1.7 percent) from November. Renewed concerns over Black Sea export flows lent support to international wheat prices; however, markets remained pressured down by ample supplies, with confirmation of large crops in Argentina and Australia reinforcing the downward trend.

The FAO Vegetable Oil Price Index averaged 164.6 points in December, down 0.4 points (0.2 percent) from November and marking a six-month low. The decline reflected lower world prices of soy, rapeseed and sunflower oils, which more than offset higher palm oil quotations.

The FAO Dairy Price Index declined by 5.9 points (4.4 percent) in December. Butter prices fell sharply, driven by seasonally higher cream availability in Europe and stock accumulation following strong production earlier in the year.

The FAO Sugar Price Index averaged 90.7 points in December, up 2.1 points (2.4 percent) from November after three consecutive monthly declines, but it remained 28.6 points (24.0 percent) below its level a year ago.

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