In 2025, global grain production is expected to increase by 4.4 percent to 2,990 million tons, an all-time record. Global food prices fell in October Economic development
World food prices decreased in October. This is stated in a press release published on Friday by the Food and Agriculture Organization of the United Nations (FAO).
The FAO Food Price Index, which tracks monthly changes in international prices for major food commodities, stood at 126.4 points in October, down 1.6 percent from the September level. The cost of wheat fell by exactly one percent, rice – by 2.5 percent. Beef prices, on the contrary, continued to rise, primarily due to high prices for products from Australia against the backdrop of stable global demand.
The dairy price index fell 3.4 percent in October, helped by a sharp drop in butter prices due to strong exports from the European Union and New Zealand. The cost of milk powder also decreased due to limited import demand and high competition among exporters.
The average price of sugar decreased by 5.3 percent compared to the previous month, reaching its lowest level since December 2020. The trend is driven by strong production in Brazil and expected increases in export stocks in Thailand and India.
The vegetable oil price index increased 0.9 percent in October, to its highest level since July 2022. Prices for palm, rapeseed, soybean and sunflower oils rose under the influence of a complex of factors, including delays in harvesting in the Black Sea region.
Forecasts indicate a record grain harvest
Also on Friday, FAO published updated forecasts for the development of the global grain market. In 2025, global grain production is expected to increase by 4.4 percent to 2,990 million tons, an all-time record. Production growth is projected for all major types of grain. World grain reserves will increase by 5.7 percent to a record 916.3 million tons. The stock-to-use ratio for the 2025-2026 season is projected to reach 31.1 percent, the highest level since 2017-2018.