(MENAFN) The UN Food and Agriculture Organization (FAO) announced Friday that worldwide food costs declined 1.6% throughout October, driven primarily by plentiful global inventories.

FAO's Food Price Index—a benchmark monitoring monthly shifts in international costs for key traded agricultural commodities—dropped to 126.4 points during October.

The measurement marked its second straight monthly downturn, following September's decrease that stemmed partly from tumbling sugar valuations.

October witnessed the Cereal Price Index slide 1.9% compared to the prior month as wheat and rice values retreated. Wheat quotations decreased 1%, whereas rice valuations plummeted 2.5%.

The Sugar Price Index collapsed 5.3% in October, plunging to its weakest position since December 2020. The sharp decline resulted from robust output in Brazil, anticipated production expansions in Thailand and India, plus diminished crude oil costs.

October saw the Dairy Price Index tumble 3.4% versus the preceding month, propelled by reduced milk powder and butter valuations stemming from elevated shipments from the EU and New Zealand.

The Meat Price Index likewise retreated 2% in October, ending an eight-month surge. Nevertheless, beef quotations maintained their upward trajectory, fueled by robust worldwide consumption and elevated price proposals from Australia.

Conversely, the Vegetable Oil Price Index surged 0.9% in October, achieving its peak level since July 2022, attributed to harvest disruptions in the Black Sea region.

Record-Breaking Global Cereal Output Projected
FAO simultaneously revised projections for worldwide cereal markets, anticipating production will surge 4.4% in 2025 to hit 2.99 billion tons—an unprecedented record—with output gains forecast across all principal cereals, particularly corn and rice.

The organization additionally projects global grain reserves will climb 5.7%, attaining a historic peak of 916.3 million tons.

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