Global food prices declined for a third consecutive month in November, driven by lower international prices for most major food commodities, according to the latest Food Price Index released by the Food and Agriculture Organization (FAO) of the United Nations.
FAO said the Food Price Index averaged 125.1 points in November, representing a 1.2% decline from its revised October level. The index now stands 2.1% lower than in November 2024 and is 21.9% below its peak reached in March 2022.
The overall decline was led by lower prices for vegetable oils, meat, dairy, and sugar, while cereals were the only major category to record an increase during the month.
FAO added that the Cereal Price Index increased by 1.3 percent during the month.
“Despite a generally comfortable global supply outlook and reports of good harvests in Argentina and Australia, global wheat prices rose by 2.5% in November, supported by potential Chinese interest in supplies from the United States of America, continuing hostilities in the Black Sea region, and expectations of reduced plantings for the 2026 harvest in the Russian Federation,” it said.
International maize prices also strengthened, underpinned by firm demand for Brazilian supplies. In contrast, the FAO All Rice Price Index declined due to subdued import demand for Indica and fragrant rice varieties.
“The FAO Vegetable Oil Price Index fell by 2.6% from October, as declines in palm, rapeseed and sunflower oil quotations more than offset a modest increase in soyoil prices, which were supported by strong demand from the biodiesel sector, particularly in Brazil.”
FAO added that the Meat Price Index edged down 0.8% from its revised October level.
“Global poultry meat prices decreased amid abundant exportable supplies and heightened global competition, partly reflecting Brazil’s efforts to regain market share following the lifting of highly pathogenic avian influenza-related trade bans by key importers,” it said.
“Pig meat prices also declined, largely due to ample supplies in the European Union and subdued demand from China after the introduction of import duties. International bovine meat quotations remained broadly stable, while ovine meat prices increased.”
FAO said that the Dairy Price Index declined by 3.1% in November, led by lower quotations for butter and whole milk powder. “The decrease reflected rising milk production and abundant export supplies in major producing regions.”
It added that the Sugar Price Index declined by 5.9% from October, driven by expectations of ample global supplies in the current season and strong production trends in Brazil, India, and Thailand.
FAO said that it also released updated forecasts for world cereal markets in 2025.
“Thanks to larger-than-expected wheat harvests, especially in Argentina, global cereal output is now foreseen to surpass three billion tonnes for the first time, rising 4.9% to 3.003 billion tons,” it said.
“Coarse grain and rice outputs are both expected to increase from the previous year, with world rice output projected to grow by 1.6 percent, led by Bangladesh, Brazil, China, India, and Indonesia.”
FAO added that the new Cereal Supply and Demand Brief also offers preliminary updates on trends in the ongoing winter wheat season in the northern hemisphere and coarse grain plantings in the southern hemisphere.
“World cereal utilization in 2025/26 is now expected to increase by 2.1% from the previous year. Based on the updated forecasts, global cereal stocks are predicted to expand by 6.5% to a record high of 925.5 million tons, while the new forecast for world trade in cereals in 2025/26 points to a 3.3% increase to 500.6 million tons.”
(IOL)
