World food commodity prices declined in November, led by lower international quotations for all major staple foods except cereals, according to the benchmark measure released by the U.N. Food & Agriculture Organization (FAO).
The FAO Food Price Index, which tracks monthly changes in the international prices of a basket of globally traded food commodities, averaged 125.1 points in November, down 1.2 percent from its revised October level. The index has now declined for three consecutive months, standing 2.1 percent below its November 2024 level and 21.9 percent lower than its peak in March 2022.
The agency’s sugar price reference fell 5.9 per cent from October to its lowest since December 2020, pressured by ample global supply expectations, while the dairy price index dropped 3.1 per cent in a fifth consecutive monthly decline, reflecting increased milk production and export supplies.
Vegetable oil prices fell 2.6 per cent to a five-month low, as declines for most products including palm oil outweighed strength in soyoil.
Meat prices declined 0.8 per cent, with pork and poultry leading the decrease, while beef quotations stabilised as the removal of U.S. tariffs on beef imports tempered recent strength, the FAO said.
In contrast, the FAO’s cereal price benchmark rose 1.8 per cent month-on-month. Wheat prices increased due to potential demand from China and geopolitical tensions in the Black Sea region, while maize prices were supported by demand for Brazilian exports and reports of weather disruption to field work in South America.
In a separate cereal supply and demand report, the FAO raised its global cereal production forecast for 2025 to a record 3.003 billion tonnes, compared with 2.990 billion tonnes projected last month, mainly due to increased wheat output estimates.
Forecast world cereal stocks at the end of the 2025/26 season were also revised up to a record 925.5 million tonnes, reflecting expectations of expanded wheat stocks in China and India as well as higher coarse grain stocks in exporting countries, the FAO said.