Global food prices fell in October due to weak demand

According to the statement made by FAO, the FAO Food Price Index, which monitors the monthly change in international prices of food products, decreased by 1.2 percent compared to the previous month in October, reaching 133.9 points.

The index continued to remain approximately 16.4 percent below the historical record set in March 2022, after the start of the Russia-Ukraine War. The index increased by 5.9 percent compared to the same period last year.

The main reasons for the price decreases were the weakening of international import demand and the decline in grain, dairy and meat prices.

Grain prices continue to decline, rice prices continue to rise

FAO Grain Price Index decreased by 4.5 percent in October compared to September. Global wheat prices declined for the first time in the last 4 months due to the improvement in the production outlook and weak demand, especially in Argentina. While optimistic expectations for export flows in the Black Sea region pressured prices, logistical disruptions in the region limited the decline.

While corn prices decreased due to harvest pressure in the USA and the expectation of abundant supply in South America, the rice index increased by 1.6 percent in October due to adverse weather conditions and harvest delays.

Sugar prices are at their highest in 2 years

The FAO Sugar Price Index reached its highest level since December 2024, recording a monthly increase of 6.6 percent in October. Sugar prices increased by 28.8 percent compared to the same period last year. Heavy rains in Brazil's central-south region disrupted harvest operations and production concerns in India, Thailand and the European Union triggered the rise.

Vegetable oils increased slightly, meat and dairy products decreased

The FAO Vegetable Oil Price Index showed a limited monthly increase of 0.3 percent in October. While soybean oil prices rose to their highest level since the end of 2022 due to the strong demand of the biofuel sector, sunflower oil prices also returned from the bottom due to supply constraints in the Black Sea.

The FAO Dairy Index fell 1.1 percent monthly due to ample supply and weak buying interest. The FAO Meat Price Index decreased by 1.2 percent due to the decrease in pork, sheep and beef prices.

Grain production forecast revised upwards

FAO also published the Grain Supply and Demand Summary Report, which includes evaluations and forecasts on global production, consumption, trade and stock trends.

Accordingly, global grain production is expected to fall behind the historical record in 2025 in 2026, but will be at the second highest level in history with 2 billion 999 million tons. While a decrease in production is predicted for all main grain products, especially wheat, a limited decrease is predicted for feed grains.

Global rice production is expected to shrink for the first time in the last 4 seasons, decreasing by 2.5 percent to 552 million tons, due to weak producer margins and adverse weather conditions caused by El Niño.

It is estimated that global grain consumption will reach 2 billion 971 million tons in the 2026/27 period, with a slight increase of 0.2 percent compared to the previous season.