UN food price index edges down in October on weak demand

The Food and Agriculture Organization of the United Nations (FAO), based in Rome, reported that its global food price index averaged 133.9 points in October 2026. That is 1.6 points, or 1.2%, below the revised September figure. The index tracks international prices of a basket of globally traded food commodities, and the decline was linked to weaker import demand. The index is still 5.9% above its level a year earlier, but 16.4% below the March 2022 peak.

Cereals, oils, meat and dairy

The cereal price index fell 4.5% in a month. Wheat prices dropped after four consecutive monthly rises, as demand was subdued and the production outlook improved, particularly in Argentina. Maize prices eased after hitting a three-year high in September. The rice price index, by contrast, rose 1.6% because of harvest delays and adverse weather.

The vegetable oil index rose 0.3%, as soybean and sunflower oil became more expensive while rapeseed oil fell. The meat index declined 1.2% and the dairy index 1.1%, with butter and cheese prices lower. The sugar index rose 6.6% for a fourth straight monthly increase, driven by rain-related disruption to sugarcane harvesting in Brazil and concern over crops in India, the European Union and Thailand.

Cereal outlook and food assistance

FAO forecasts that world cereal production in 2026 will fall from the 2025 record but remain the second highest on record, at 2,999 million tonnes. Cereal trade in 2026/27 is expected to contract by 3.3% to 507.7 million tonnes, mainly because of an 8.6% fall in wheat trade.

The organization also noted that 41 countries and territories still require external food assistance, 31 of them in Africa. Conflicts and insecurity are the main drivers of severe acute food insecurity, while weather shocks linked to the strong El Niño event are worsening conditions in several subregions.