Global food price index declines for second consecutive month in October 2025: FAO
The decline was primarily influenced by reductions in prices across major cereals, which contributed to the overall downward trend in global food commodities
GLOBAL – The benchmark global food commodity index, as measured by the Food and Agriculture Organization (FAO) of the United Nations, fell to 126.4 points in October 2025, marking the second consecutive monthly decline.
This represents a 1.6 percent decrease from September 2025, with the FAO Food Price Index (FPI) remaining slightly below its October 2024 level and 21 percent lower than its peak in March 2022.
The decline was primarily influenced by reductions in prices across major cereals, which contributed to the overall downward trend in global food commodities.
The FAO Cereal Price Index averaged 103.6 points in October 2025, reflecting a 1.3 percent drop from September and a 9.5 percent decrease compared to the same period in 2024.
This index encompasses sub-components for wheat, coarse grains, and rice, all of which experienced price reductions during the month.
Wheat prices fell by 1.0 percent, largely due to ample global supplies, favorable production prospects in the Southern Hemisphere where harvesting is currently underway, and steady progress in winter wheat planting across the Northern Hemisphere.
Similarly, the coarse grains sub-index declined by 1.1 percent, with lower quotations for barley, maize, and sorghum.
While downward pressure persisted, it was partially offset by reports of reduced maize yields in the European Union and potentially in the United States, as well as developments in trade agreements between China and the United States.
The All-Rice Price Index recorded a more pronounced drop of 2.5 percent, attributed to intensified market competition and the commencement of main-crop harvests in several Northern Hemisphere exporting countries.
Looking ahead, FAO’s updated forecasts for the 2025/26 season indicate robust growth in the global cereals sector.
World cereal production is projected to increase by 4.4 percent to a record 2,990 million tonnes, with expansions anticipated across all major cereals. Global cereal utilization is expected to rise by 1.8 percent to 2,929 million tonnes, driven primarily by ample supplies, lower prices, and accelerated feed use.
Cereal stocks are forecasted to expand by 5.7 percent to a record high of 916.3 million tonnes, resulting in a stocks-to-use ratio of 31.1 percent, the highest since the 2017/18 season.
International trade in cereals is anticipated to grow by 3.2 percent to 499.5 million tonnes, with strong increases in wheat trade, particularly from Asia, though global rice trade may see a slight decline.
In contrast to the cereals sector, the Vegetable Oil Price Index rose by 0.9 percent to 169.4 points in October 2025, reaching its highest level since July 2022.
This increase was driven by higher quotations for palm, rapeseed, soy, and sunflower oils. Sunflower oil prices climbed for the fourth consecutive month due to limited supplies from the Black Sea region, stemming from harvest delays and cautious sales by farmers.
Rapeseed and soy oil prices also advanced, reflecting tight supplies in the European Union and elevated domestic demand in Brazil and the United States.
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