World Food Prices Fall for 5th Month

The FAO Food Price Index slipped 0.4% to 123.9 points in January 2026, marking a fifth consecutive monthly decline and a fresh low level since August 2024. Sugar prices declined 1%, driven by expectations of increased global sugar supplies in the current season, largely underpinned by a significant production rebound anticipated in India and favourable prospects in Thailand. Also, dairy cost tumbled 5%, the seventh consecutive monthly decline, driven largely by lower world cheese and butter prices. Meat declined 0.4%, the lowest since May 2025, mainly reflecting lower pig meat prices, while quotations for bovine and ovine meats remained broadly stable. In contrast, cereal costs edged up 0.2%, reaching the highest since May 2025. Barley prices increased modestly and rice was up 1.8%, reflecting firmed demand while wheat prices declined 0.4%. Oil prices also jumped 2.1%, amid higher world prices of palm, soy and sunflower oils, which more than offset lower rapeseed oil quotations.

The FAO Food Price Index fell 0.6% to 124.3 points in December 2025, reaching the lowest since August 2024. Vegetable oil prices edged down 0.2% to a six-month low, reflecting lower prices of soy, rapeseed and sunflower oils, which more than offset higher palm oil quotations. Also, meat cost declined 1.3% to a six-month low, with prices of bovine and poultry meats falling the most. Dairy cost tumbled 4.4%, a sixth consecutive monthly decline, driven by seasonally higher cream availability in Europe and stock accumulation following strong production earlier in the year. On the other hand, prices of cereals rose 1.7% as renewed concerns over Black Sea export flows lent support to wheat prices. Sugar cost increased 2.4% after three consecutive declines, due to a sharp drop in sugar production in Brazil, reflecting lower sugarcane crushing and a reduced use of sugarcane for sugar production. For 2025, the FAO Food Price Index averaged 127.2 points, 4.3% higher than the 2024 average.

The FAO Food Price Index fell 1.2% to 125.1 points in November 2025, marking a third consecutive monthly decline and a new low level since January. Sugar prices tumbled 5.9% to the lowest level since December 2020, amid expectations of ample global sugar supplies in the current season. Sugar production remained strong in Brazil’s key southern growing regions and India’s 2025/26 harvest started well. Dairy prices dropped 3.1% to September 2024-lows with declines recorded across all major dairy commodities. Prices for vegetable oils went down 2.6% as lower quotations for palm, rapeseed and sunflower oils, more than offset a slight increase in soyoil. Also, meat decreased 0.8%, continuing to be driven by lower pig and poultry prices. On the other hand, cereal cost went up 1.8%, driven by a 2.5% increase in wheat bolstered by potential Chinese interest in supplies from the US, concerns over continuing hostilities in the Black Sea region, and expectations of reduced plantings in Russia.