The UN Food and Agriculture Organization (FAO) Food Price Index, which had been rising for three months in a row, reversed course last month. The Ministry of Agriculture, Food and Rural Affairs reported today that the index for October fell to 133.9, a 1.2% decline from September.
While the October index is 16.4% lower than the peak of 160.2 recorded in March 2022 following Russia's invasion of Ukraine, it remains 5.9% higher compared to October of last year. The decline was driven by falling prices for grains, meat, and dairy products.
The grain price index dropped 4.5% to 116.8, with wheat prices turning downward due to weak international demand and improved production prospects, particularly in Argentina. Corn, barley, and sorghum prices also fell, but rice prices rose by 1.6% due to delayed harvesting and adverse weather conditions in some exporting countries.
The meat price index fell 1.2% to 125.5, with declines in pork, mutton, and beef prices, while poultry prices remained stable. The dairy price index dropped 1.1% to 117.8, largely due to lower international butter and cheese prices, though skim milk powder prices surged amid limited supplies.
In contrast, vegetable oils saw a slight increase, with the price index edging up 0.3% to 199.2. Soybean oil prices reached their highest level since the end of 2022, driven by biofuel demand and seasonal supply declines in South America. Sunflower oil prices also rebounded, but rapeseed oil prices fell due to seasonal supply increases and weak biodiesel demand.
The sugar price index stood at 121.3, its highest level since December 2024, marking a 6.6% increase from the previous month and a 28.8% surge compared to a year ago. The price hike was primarily due to rainfall disruption to harvesting and crushing operations in Brazil's key sugarcane-producing south-central region.