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Informist, Friday, Oct. 3, 2025

 

MUMBAI – The UN Food and Agriculture Organization's Food Price Index was at 128.8 points in September, down from 129.7 points the previous month, due to declines in cereal, dairy, sugar and vegetable oil price indices. The FAO Food Price Index was 3.4% higher than a year ago but remained 19.6% below the peak it had touched in March 2022, the organisation said in a report.

 

The Vegetable Oil Price Index fell to 167.9 points in September, down nearly 1% on month, but up 18% from its year-ago level. The monthly decline primarily reflected lower palm and soybean oil prices, which offset higher prices for sunflower and rapeseed oil. Global palm oil prices decreased slightly, largely due to higher-than-expected stocks in Malaysia, which were at a 20-month high in August, according to the report. Higher availability offset increases in global import demand, it said.

 

Global soyoil prices declined for the second consecutive month, pressured by elevated supplies from Argentina following the temporary suspension of export taxes on soybeans and derived products in late September. However, sunflower and rapeseed oil prices continued to increase, due to lingering supply tightness in the Black Sea region and in Europe.

 

The Cereal Price Index was at 105.0 points in September, down 0.6% on month, and 7.5% lower than a year ago. Global wheat prices declined for the third consecutive month in September, largely due to subdued international demand and confirmation of large harvests in the Russian Federation and other key producing countries in Europe and North America. 

 

Maize prices also dropped, anticipating abundant supplies in countries such as Brazil and the US, as these countries are the major exporters of maize. Further, the temporary suspension of grain export taxes in Argentina also weighed on maize prices. Among other coarse grains, world prices of both barley and sorghum rose, with barley prices recording a third consecutive monthly increase. 

 

The FAO All Rice Price Index declined by 0.5% in September, primarily due to decreases in Indica quotations, as ample exportable supplies and reduced purchase orders from buyers in the Philippines and Africa weighed on the market, according to the report.

 

The Sugar Price Index averaged 99.4 points in September, down 4.1% on month, and over 21% from its level a year ago, reaching its lowest level since March 2021. The decline was mainly driven by higher-than-expected sugar production in Brazil, resulting from large crushing volumes and increased use of sugarcane for sugar production in key southern growing regions. In addition, favourable harvest prospects in India and Thailand, following ample monsoon rains, combined with expanded plantings, weighed on global sugar prices, the organisation said.

 

The Dairy Price Index averaged 148.3 points in September, down 2.6% on month, marking the third consecutive monthly decline while remaining 9% above its level a year ago. The monthly decrease was due to a decline in international prices for butter, cheese, skim milk powder, and whole milk powder. 

 

The relatively sharp drop in butter prices reflected a seasonal increase in cream availability as demand for ice cream in the Northern Hemisphere waned, alongside higher production expectations in New Zealand as the spring flush advances. However, despite the fall, butter prices were 6.3% above the 2024 average.

 

Milk powder quotations decreased mainly due to softer demand from key importers and firmer export competition. On the other hand, cheese prices declined only marginally, as a modest easing of prices in the European Union amid steady output and lower exports was partly offset by firmer quotations in Oceania. Smaller early-season supplies and stronger demand from Asian buyers supported cheese prices in New Zealand.

 

The Meat Price Index averaged 127.8 points in September, up nearly 1% on month and 6.6% on year, marking a new all-time high. The rise was driven by continuing higher bovine and ovine meat prices, which largely outweighed stable pig meat and lower poultry meat prices. 

 

Global bovine meat prices reached a new record high, underpinned by strong demand from the US, due to limited domestic supplies and favourable price differential, which encouraged imports, especially from Australia. Brazilian bovine prices also increased, underpinned by robust global demand. World ovine meat quotations surged on the back of solid global import demand amid limited export availability from Oceania.

 

Pig meat prices, on the other hand, were steady as firmer demand for Brazilian pig meat from alternative markets offset reduced purchases by China. In the European Union, the impact of new tariffs imposed by China on pig meat export prices remained limited. Poultry meat quotations remained firm, reflecting relatively balanced global markets, despite import restrictions related to localised outbreaks of high pathogenicity avian influenza, FAO said.  End

 

Reported by Taniva Singha Roy

Edited by Saji George Titus

 

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