Global food prices ease for the third consecutive month, FAO
Wheat markets were bolstered by potential Chinese interest in supplies from the United States.
GLOBAL – Global food commodity prices continued to soften in November, with the Food and Agriculture Organization’s (FAO) benchmark Food Price Index (FFPI) declining for the third consecutive month.
The index averaged 125 points, 1.2% below October but buoyed by a modest rise in cereals.
Overall, global food prices remained 2.1% below year-earlier levels and almost 22% beneath their peak in March 2022, confirming a trend of gradual market stabilization following pandemic-era commodity disruptions.
Much of the monthly decline was attributed to lower values in dairy, meat, sugar and vegetable oils, which overshadowed a slight increase in the cereal index.
The FAO Cereal Price Index averaged 105.5 points in November, 1.8% above October but still 5.3% below November 2024.
Despite relatively comfortable supply expectations, wheat prices rose 2.5%. Analysts attributed the uptick to uncertainty over Black Sea trade routes, anticipated reductions in Russia’s winter wheat plantings, and interest from China in U.S. supplies.
International maize and coarse grains also strengthened, supported by strong demand for Brazilian maize and reports of delayed fieldwork in Argentina and Brazil due to persistent rains.
Barley and sorghum prices followed similar patterns, also influenced by higher soybean prices that spilled over into grain markets.
Conversely, rice markets moved in the opposite direction. The FAO All Rice Price Index declined by 1.5%, reflecting abundant off-season harvesting in major northern hemisphere exporters and muted import activity that weighed heavily on Indica and fragrant rice quotations.
The Vegetable Oil Price Index registered a sharper fall, dipping 2.6% to reach a five-month low.
The decline reflected lower prices of palm, rapeseed and sunflower oils, more than offsetting a slight increase in soy oil quotations.
International palm oil prices fell in November, resulting in a discount relative to competing oils, largely due to higher-than-expected production in Malaysia.
Meanwhile, after several consecutive months of increases, rapeseed oil prices eased on positive global production prospects, while sunflower oil quotations declined amid seasonally increasing supplies from the Black Sea region.
Global soy oil prices rose slightly, mainly supported by firm demand from the biodiesel sector, particularly in Brazil.
Beyond prices, FAO’s recent global grain outlook noted that 2025 cereal production is tracking among the highest on record, with global output projections slightly above consumption.
Wheat production is forecast to remain steady on sizeable harvests in North America, the European Union and Australia, while maize output continues to benefit from Brazil’s strong supply performance.
However, FAO cautioned that stocks-to-use ratios for grains remain tight, particularly for wheat in key importing regions.
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