Global cereal prices ease in September as wheat, maize decline: FAO
The fall was driven mainly by weakening international wheat and maize quotations.
GLOBAL – The FAO Food Price Index, which tracks monthly changes in international prices of a basket of commonly traded food commodities, averaged 128.8 points in September, the Food and Agriculture Organization (FAO) of the United Nations said in its latest monthly report released on October 3.
This was down marginally from a revised 129.7 points in August, as falling prices for cereals, dairy, sugar and vegetable oils outweighed an increase in the meat index. On a year-over-year basis, the index stood 3.4% higher than in September 2024 but 19.6% below the record set in March 2022.
Within the index, cereals continued to register declines. The FAO Cereal Price Index averaged 105.0 points in September, down 0.6% from August and 7.5% lower than its level a year earlier.
The fall was driven mainly by weakening international wheat and maize quotations, even as barley and sorghum prices strengthened and rice showed a modest easing.
Wheat and maize decline
International wheat prices dropped for the third consecutive month. The FAO attributed the slide to subdued global demand and confirmation of large harvests in several key producing countries. Supplies from major exporters, including the Russian Federation, the European Union and North America, continued to weigh on quotations.
With strong availability on the export side, buyers in importing countries have been able to hold back purchases, further dampening demand pressure on global markets.
Maize (corn) also registered lower prices during September. Forecasts of abundant exportable supplies in major producing regions underpinned the decline, and Argentina’s temporary suspension of grain export taxes added to the downward momentum by making its maize more competitive internationally.
The FAO noted that these conditions collectively softened maize quotations, even as demand for feed and industrial use remains firm in several regions.
Coarse grains firm
Not all coarse grains followed the same trend. Barley prices rose for the third straight month, supported by tight supplies and steady demand, particularly from Middle Eastern markets where the grain is widely used for feed.
Sorghum quotations also strengthened during the month, reflecting limited availability from key exporters such as the United States.
The contrasting movement between maize and other coarse grains highlights the uneven supply-demand dynamics across markets. While maize is benefiting from favorable harvest outlooks, tighter supplies of barley and sorghum are exerting upward pressure on those markets.
Rice prices ease slightly
The FAO All-Rice Price Index fell by 0.5% in September, led by declines in indica rice quotations. The report linked the fall to sufficient exportable supplies and weaker import demand from major buyers, particularly in Africa and the Philippines.
Despite this easing, the agency cautioned that global rice markets remain sensitive to policy decisions in major exporting countries and to climatic factors in Asia, where most of the world’s rice is produced and consumed.
Overall, the FAO emphasized that global cereal markets remain well supplied, with record world cereal output projected for 2025.
The easing of wheat and maize prices is expected to bring some relief to importing countries, many of which faced high food inflation in recent years. However, the agency warned that risks tied to weather variability, trade policies, and geopolitical uncertainties could still disrupt market stability.
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