Sugar accumulates an increase of almost 30% in one year, while food becomes cheaper, points out FAO

The international price of sugar rose 28.8% in October compared to the previous year, FAO reported this Friday (6). Global food prices fell 1.2%.

Rains in the Center-South of Brazil hampered sugarcane harvesting and crushing. Concerns about the harvest in India, the European Union and Thailand also put pressure on the price.

Although the FAO general index fell in October, it was 5.9% above that recorded in 2025. The decline was driven by cereals, dairy products and meat.

Cereals led the fall with a drop of 4.5%. Wheat and corn became cheaper, while rice rose 1.6% due to harvest delays.

Meat and dairy products recorded drops of 1.2% and 1.1%, respectively. Vegetable oils rose 0.3%, highlighted by the rise in soybeans driven by biofuels.

The international price of sugar rose 28.8% in October compared to the same month last year, while global food prices fell. Compared to September, the price of sugar increased 6.6%.

It was the fourth consecutive monthly increase in sugar, which reached the highest level since December 2024, according to data released this Friday (6) by the Food and Agriculture Organization of the United Nations (FAO).

The main pressure came from the rains, which damaged the harvesting and crushing of sugar cane in the Center-South of Brazil, the country's main producing region. Concerns about production in India, the European Union and Thailand in the 2026/27 harvest also weighed in.

According to the FAO, the increase was driven mainly by "interruptions related to rain in sugarcane harvesting and milling operations" in the Brazilian Center-South and by uncertainties about production in India, the European Union and Thailand.

The rise in sugar contrasts with the fall in global food prices. The FAO index, which tracks international prices of agricultural products sold around the world, stood at 133.9 points in October, a drop of 1.2% compared to September.

Despite the drop in the month, the indicator was still 5.9% above the level of October 2025. Compared to the peak in March 2022, after the spike in prices caused by the war in Ukraine, the index was 16.4% lower.

The fall in October was mainly driven by the prices of cereals, dairy products and meat. These declines more than offset the rise in sugar prices and the increase in vegetable oil prices.

Among the groups monitored by FAO, cereals had the biggest price drop in October: 4.5%. Wheat broke a four-month bull run.

According to the organization, prices fell due to weaker international demand and improved production prospects, especially in Argentina.

The expectation of a reduction in restrictions on the transport of products through the Black Sea also helped to reduce prices, although difficulties in transport and flow of production in the region still limit exports.

Corn also became cheaper after reaching its highest price in three years in September. The drop reflected the harvest in the United States, the expectation of abundant supply in the main exporting countries in South America and the possibility of a reduction in tensions in the Black Sea region.

Rice followed in the opposite direction, with prices rising 1.6% in October. The increase was influenced by harvest delays in some exporting countries, unfavorable weather conditions and higher production costs.

International meat prices fell 1.2% in the month. Pork, lamb and beef became cheaper, while chicken prices remained practically stable.

The dairy price index fell 1.1%, mainly due to the reduction in international values ​​for butter and cheese. Abundant supply and lower demand put pressure on the prices of these products and offset the rise in powdered milk.

Vegetable oils rose 0.3%. The rise in prices for soybean and sunflower oils outpaced the decline in rapeseed oil.

In the case of soybeans, values ​​reached the highest level since the end of 2022, driven by demand from the biofuels sector and the reduction in supply typical for this period of the year in South America.