Global food prices ease slightly in September – FAO

Global food commodity prices eased slightly in September, according to the latest update from the Food and Agriculture Organization of the United Nations (FAO).

Source: Freepik

The FAO Food Price Index, which tracks monthly changes in international prices of widely traded food commodities, averaged 128.8 points in September, down from a revised 129.7 points in August. Despite the monthly decline, the index remains 3.4% higher than a year ago.

The moderation was driven mainly by declines in sugar and dairy prices.

• The sugar price index dropped 4.1%, reaching its lowest level since March 2021, as higher-than-expected production in Brazil and strong harvest prospects in India and Thailand weighed on prices.
• The dairy price index fell 2.6%, reflecting lower butter and milk powder quotations amid softer global demand and increased export competition.

Among other categories:

• The cereal price index decreased 0.6%, with wheat and maize prices easing on reports of large harvests in key producing regions and strong supply prospects.
• The vegetable oil price index fell 0.7%, as ample palm and soybean oil supplies offset higher sunflower and rapeseed oil prices.
• The meat price index, however, rose 0.7% to a new record high, up 6.6% year on year, led by strong bovine and ovine meat demand in the United States.

Strong global cereal outlook

FAO’s Cereal Supply and Demand Brief, also released on Friday, projects global cereal production in 2025 at 2.97 billion tonnes, a 3.8% increase on 2024 and the largest annual growth since 2013.

The upward revision reflects higher production prospects for wheat in Australia, maize in the United States, and rice in India. Total cereal utilisation in 2025/26 is forecast to rise to 2.93 billion tonnes, while global stocks could expand to 900.2 million tonnes, keeping the stocks-to-use ratio steady at 30.6% – signalling comfortable global supply conditions.

Global cereal trade is expected to increase by 2.5% to 497.1 million tonnes, driven by higher wheat shipments. However, international rice trade may decline as key Asian and African importers scale back purchases following strong domestic harvests.

The Agricultural Market Information System (AMIS), hosted by FAO, also released its monthly Market Monitor, featuring a special review of low-carbon ammonia production for fertilisers.