Lower prices for cereals, dairy, and meat drove the decline despite a sharp rise in sugar costs, according to the FAO.
Global food commodity prices declined by 1.2 per cent in October 2026, according to data released by the Food and Agriculture Organization of the United Nations (FAO). The FAO Food Price Index (FFPI) averaged 133.9 points, down 1.6 points from the revised September reading.
The decline was supported by lower prices for cereals, dairy products, and meat amid weaker international demand. However, the index remained 5.9 per cent higher than the level recorded in October last year and 16.4 per cent below the March 2022 peak.
The FAO Cereal Price Index fell 4.5 per cent from September. World wheat prices declined due to subdued international demand and an improving production outlook, particularly in Argentina, though logistical disruptions in the Black Sea region limited the fall. Maize prices also eased following harvesting progress in the United States.
While rice prices rose 1.6 per cent due to harvest delays and weather, the Dairy Price Index fell 1.1 per cent. The Meat Price Index also dropped 1.2 per cent, with declines in pig, ovine, and bovine meats.
Sugar prices rose 6.6 per cent from September, reaching their highest level since December 2024. The FAO attributed this to rainfall-related disruptions in Brazil and production concerns in India, the European Union, and Thailand. Vegetable oil prices increased marginally by 0.3 per cent.
The FAO forecast global cereal production at 2,999 million tonnes in 2026. Global cereal trade is expected to contract by 3.3 per cent to 507.7 million tonnes in the 2026/27 season, largely due to an expected 8.6 per cent decline in wheat trade.
