In September, global prices for key food commodities continued to decline, as confirmed by the updated FAO food price index. According to the organization’s data, the average index value in September was 128.8 points, slightly lower than the revised figure for August (129.7 points).
This is reported by Finway
Dynamics of the FAO Index and Key Influencing Factors
Despite a slight monthly decline, the index remains 3.4% higher than in September of last year. At the same time, the index has decreased by approximately 20% from the record level recorded in March 2022 following the onset of Russia’s full-scale invasion of Ukraine.
In September, the drop in sugar prices was particularly noticeable, reaching the lowest level since 2021. This was due to positive production dynamics: in Brazil, the harvest exceeded expectations, while forecasts for the season in India and Thailand remain favorable.
“The drop in sugar prices reflects improved supply forecasts, as production in Brazil exceeded expectations, and harvest forecasts in India and Thailand are favorable.”
Changes in Major Food Categories
Prices for dairy products decreased by 2.6% in September compared to the previous month. The main pressure on this segment was caused by a sharp drop in butter prices, resulting from increased production forecasts in Oceania.
The FAO price index for cereals also fell by 0.6% over the month. In particular, wheat prices continued to decline for the third consecutive month, attributed to significant harvest volumes in various countries and reduced demand in the international market. The price of corn also decreased, partly due to the temporary suspension of export taxes in Argentina. The rice market is experiencing a monthly price drop as buyers from the Philippines and Africa have reduced their order volumes.
The cost of vegetable oil fell by 0.7%. The decline in palm and soybean oil prices offset the increase in sunflower and rapeseed oil prices.
Conversely, meat prices moved in the opposite direction—the FAO index for this category rose by 0.7%, reaching a new historical high. The increase in value was driven by rising prices for beef and lamb.