Global food commodity prices saw a dip in September, driven by decreases in sugar and dairy prices, even as meat prices reached a new high, the United Nations’ Food and Agriculture Organization announced on Friday.
The FAO Food Price Index (FFPI) experienced a slight downturn in September 2025, averaging 128.8 points, a marginal decrease from its revised August level of 129.7 points.
This dip was primarily driven by declines across cereal, dairy, sugar, and vegetable oil indices, which collectively outweighed a notable increase in the meat index.
While the FFPI remains 4.2 points (3.4%) higher than in September 2024, it is still a substantial 31.4 points (19.6%) below its peak observed in March 2022.
Sugar prices lowest since 2021
The FAO Sugar Price Index averaged 99.4 points in September, a significant drop of 4.2 points (4.1%) from August and a substantial 26.9 points (21.3%) from a year ago, reaching its lowest level since March 2021 (96.2 points).
“The drop was 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,” FAO said in its report.
Additional downward pressure on prices came from favorable harvest prospects in India and Thailand, following ample monsoon rains and expanded plantings.
Cereal prices
The FAO Cereal Price Index recorded 105.0 points in September, down 0.6 points (0.6%) from August and 8.5 points (7.5%) below its September 2024 level.
World 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 saw a decline, fueled by forecasts of abundant supplies from Brazil and the US, further exacerbated by Argentina’s temporary suspension of grain export taxes.
Conversely, prices for barley and sorghum rose, with barley marking its third consecutive monthly increase.
The FAO All Rice Price Index also fell by 0.5%, primarily due to declines in Indica quotations as ample exportable supplies met reduced purchase orders from buyers in the Philippines and Africa.
Vegetable oil
The FAO Vegetable Oil Price Index averaged 167.9 points in September, a 1.2-point (0.7%) drop from August, yet still 25.0 points (18.0%) above its level a year earlier.
This decline was largely a result of lower palm and soybean oil quotations, which more than offset increases in sunflower and rapeseed oil prices.
“International palm oil prices decreased slightly, largely due to higher-than-expected August stocks reported in Malaysia – reaching a 20-month high, offsetting the impact of strong global import demand.
Global soyoil prices continued their downward trajectory for the second consecutive month, pressured by elevated supplies from Argentina following the temporary suspension of export taxes on soybeans and derived products.
In contrast, sunflower and rapeseed oil quotations continued their upward climb, reflecting persistent supply tightness in the Black Sea region and Europe, respectively.
Beef prices drive meat index
The FAO Meat Price Index averaged 127.8 points in September, climbing 0.9 points (0.7%) from its revised August level and a substantial 7.9 points (6.6%) from a year earlier, reaching an unprecedented record high.
“The increase reflected higher world bovine and ovine meat prices, while pig and poultry meat quotations remained broadly stable,” FAO said.
“Bovine meat prices climbed to an all-time high, supported by strong demand in the United States of America, where limited domestic supplies and favourable price differential continued to encourage imports, especially from Australia, where prices rose.”
Poultry meat quotations remained firm, reflecting relatively balanced global markets, even with import restrictions due to localised outbreaks of highly pathogenic avian influenza.
Meanwhile, the FAO Dairy Price Index averaged 148.3 points in September 2025, marking its third consecutive monthly decline, down 2.6% from August, though still nearly 9% above its level a year earlier.
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