Translation. Region: Russian Federal
Source: United Nations – United Nations –
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October 3, 2025 Economic development
Global food prices fell slightly in September, according to new data from the Food and Agriculture Organization of the United Nations (FAO). The main factor driving the decline was a drop in sugar and dairy prices.
The FAO Food Price Index, which tracks monthly changes in international prices of key food commodities, stood at 128.8 points in September, slightly below the August level of 129.7. Year-on-year, the index increased by 3.4 percent.
Grains: Stability amid record harvests
The grain price index fell 0.6 percent compared to August. Global wheat prices have fallen for the third consecutive month, amid weak demand and large harvests in leading producing countries.
Corn prices fell on forecasts of ample supplies and the temporary waiver of export duties in Argentina. Rice prices fell by 0.5 percent due to reduced purchases by the Philippines and African countries.
Vegetable oils and dairy products are getting cheaper
The vegetable oil price index fell by 0.7 percent, driven by falling palm and soybean oil prices. Malaysia has accumulated significant palm oil reserves, and Argentina has increased soybean exports. Meanwhile, sunflower and rapeseed oil prices increased slightly.
Dairy product prices fell by 2.6 percent. Butter prices fell particularly significantly, by seven percent, reflecting the end of the ice cream season in the Northern Hemisphere and favorable production forecasts in Australia and New Zealand. Powdered milk prices fell due to weak demand and increased competition in export markets. Cheese prices fell slightly.
Meat is getting more expensive
The meat price index rose 0.7 percent, reaching a record high – it's now 6.6 percent higher than a year ago. Beef, for which demand remains strong in the US, has risen particularly significantly. This is stimulating imports, supporting price growth. Lamb prices also increased, while pork and poultry prices remained stable.
Sugar: Lowest prices since March 2021
The sugar price index fell 4.1 percent, reaching its lowest level in four and a half years. This was driven by record production in Brazil, as well as favorable harvest forecasts in India and Thailand, thanks to abundant monsoon rains and expanded planting areas.
Forecasts for 2025: Growth in grain production and trade
In its report, the FAO presented updated forecasts for global cereal production in 2025. Total production is expected to reach 2,971 million tonnes, up 3.8 percent from last year and the largest annual increase since 2013. The increase will be driven by increased wheat harvests in Australia, maize in the United States, and rice in India.
Grain consumption in 2025/26 is projected at 2.93 billion tonnes, with sufficient reserves for both food and feed. Global grain reserves by the end of the 2026 season could reach 900.2 million tonnes, with rice reserves reaching record levels.
According to FAO estimates, international cereal trade will grow by 2.5 percent to reach 497.1 million tonnes. The main contributor will be an increase in wheat trade, while rice exports will decline due to lower demand in Asia and Africa amid good local harvests and large purchases made earlier in 2025.
Please note: This information is raw content obtained directly from the source. It represents an accurate account of the source's assertions and does not necessarily reflect the position of MIL-OSI or its clients.
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