Rome - World food commodity prices generally declined in October, driven largely by ample global supplies, according to the benchmark measure released Friday by the Food and Agriculture Organization of the United Nations (FAO).
The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 126.4 points in October, down 1.6 percent from its revised September level.
The FAO Cereal Price Index declined by 1.3 percent from September, with declines recorded across all the major cereals. The wheat price index dropped by 1.0 percent, the coarse grain index by 1.1 percent, and the FAO All Rice Price Index by 2.5 percent.
The FAO Meat Price Index declined by 2.0 percent in the month, led by sharp drops in pig and poultry prices. Bovine meat prices, however, continued to rise, driven by higher quotations from Australia due to firm global demand.
The FAO Dairy Price Index declined by 3.4 percent in October, led by a sharp decline in butter quotations tied to ample export availabilities from the European Union and New Zealand. Milk powder quotations also fell, due to limited import demand and strong export competition.
The FAO Sugar Price Index declined by 5.3 percent from the previous month to its lowest level since December 2020, driven by strong production trends in Brazil and anticipated larger outputs in Thailand and India. Lower crude oil prices also exerted further downward pressure on world sugar prices through lower demand from the biofuel sector.
The FAO Vegetable Oil Price Index moved against the overall downward trend, rising by 0.9 percent in October to its highest level since July 2022. Quotations for palm, rapeseed, soy and sunflower oils all rose, due to a mix of factors including biofuel mandates and harvest delays in the Black Sea region.
