FAO Food Price Index fell in September due to falling prices for sugar and dairy products

In September, the average value of the FAO Food Price Index (FPI) decreased to 128.8 points (129.7 points in August), which was 3.4% higher than the September 2024 figure, but 19.6% lower than the record value of March 2022. The decrease in the price indices for cereals, sugar, dairy products and vegetable oils offset the increase in meat prices.

Thus, the FAO Cereal Price Index decreased by 0.6% compared to August to 105 points, which is 7.5% lower than the September 2024 figure. World wheat prices continued to fall against the background of significant harvests in the Russian Federation, the EU countries and North America, as well as a decrease in demand. Corn became cheaper under the pressure of large supply from Brazil and the USA, as well as the temporary abolition of tariffs by Argentina. Barley prices increased for the third consecutive month. The FAO price index for all types of rice decreased by 0.5% against the background of a decrease in demand from the Philippines and African countries, as well as significant supply.

The FAO Vegetable Oil Price Index fell 0.7% from August to 167.9 points, up 18% from September 2024. Palm oil prices fell on the back of large inventories in Malaysia, while soybean prices fell on pressure from increased supplies from Argentina. Sunflower and rapeseed oils rose on tighter supplies in the Black Sea region and Europe.

The FAO Meat Price Index rose by 0.7% to a record 127.8 points, 6.6% above the September 2024 level. Global beef prices rose on strong demand, lamb on strong demand and tight supply in Oceania, while pork and poultry prices remained stable.

The FAO Dairy Price Index fell (for the third consecutive month) by another 2.6% to 148.3 points, which is 9% higher than the September 2024 figure. Butter prices fell by 7%, skimmed milk powder by 4.3%, and whole milk powder by 3.1% amid falling demand and increasing export competition.

The average value of the FAO Sugar Price Index decreased by 4.1% compared to August to the lowest level since March 2021 of 99.4 points, which is 21.3% lower than the September 2024 figure. The reason was the increase in production in Brazil and forecasts of good harvests in India and Thailand.

The FAO Meat Price Index is derived from projected and actual prices, as most prices for different types of meat (unlike other commodity groups) are unknown at the time of calculation. This sometimes results in significant adjustments to the Meat Price Index, which affects the FAO Food Price Index.