Global Food Prices Decline Again Amid Abundant Supplies

World food commodity prices fell for the second consecutive month in October as reported by the FAO. The decline was driven by ample global supplies, resulting in significant drops in sugar and dairy indices, whereas vegetable oils slightly increased. The FAO also forecasted a record high cereal production for 2025.

World food commodity prices saw a decline for the second month in a row this October, the United Nations' Food and Agriculture Organization reported on Friday. A global abundance of supplies has been largely credited for this downward trend.

The FAO Food Price Index, which monitors a collection of globally traded food commodities, fell to 126.4 points in October, dropping from 128.5 in September. Although slightly lower than the previous year, the index is still significantly below the March 2022 peak of 21.1%.

Sugar prices have significantly contributed to the decline, with the FAO's sugar index dropping to its lowest since December 2020. Meanwhile, dairy prices slumped due to weaker milk powder and butter quotations, with meat prices also easing after eight months of increase.

(With inputs from agencies.)