FAO Food Price Index declines in November for third consecutive month

Dec 08, 2025 News

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 Friday by the Food and Agriculture Organisation of the United Nations (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 FAO 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 percent 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. International maize prices also rose, underpinned by firm demand for Brazilian supplies, while the FAO All Rice Price Index declined amid subdued import demand for Indica and fragrant rice varieties.

The FAO Vegetable Oil Price Index fell by 2.6 percent 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.

The FAO Meat Price Index edged down 0.8 percent 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 high-pathogenicity avian influenza-related trade bans by key importers. 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.

The FAO Dairy Price Index declined by 3.1 percent 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. The FAO Sugar Price Index declined by 5.9 percent from October, driven by expectations of ample global supplies in the current season and strong production trends in Brazil, India and Thailand. FAO 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 ever, rising 4.9 percent to 3.003 billion tonnes. 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.

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 percent from the previous year. Based on the updated forecasts, global cereal stocks are predicted to expand by 6.5 percent to a record high of 925.5 million tonnes, while the new forecast for world trade in cereals in 2025/26 points to a 3.3 percent increase to 500.6 million tonnes.

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FAO Food Price Index declines in November for third consecutive month

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