World food prices are falling. The exception is grain

World prices for food commodities, except for cereals, decreased in October.

This is stated in the message of the Food and Agricultural Organization of the United Nations (FAO).

As noted, the FAO Food Price Index stood at 135.9 points in October, down 0.4% from September and 14.9% from the all-time high recorded in March 2022. It remains at 2% higher than its level in October 2021.

The FAO grain price index increased by 3% during the month. World wheat prices rose 3.2%, mainly reflecting uncertainty surrounding the Black Sea Grain Initiative and a downward revision to US stocks. International feed grain prices rose 3.5% compared to September, with corn prices rising further due to lower production prospects in the US and EU, as well as dry conditions in Argentina and uncertainty over exports from Ukraine.

The FAO vegetable oil price index fell 1.6% in October and remained nearly 20% below the previous year’s level. The increase in global sunflower oil quotations was more than offset by the decrease in global prices for palm, soybean and rapeseed oil.

The FAO Dairy Price Index fell 1.7%, with prices for all dairy products down since September. Lower-than-expected Chinese purchases, sluggish import demand and a weaker euro against the US dollar contributed to October’s decline.

The FAO meat price index fell 1.4% in October compared to September, with international prices for lamb, pork, beef and poultry falling on generally subdued global import demand and increased export supplies.

The FAO sugar price index fell 0.6%, helped by improved production prospects in India. Factors such as rains hampering the harvest in Brazil, strong demand for imports from Indonesia and China and higher ethanol price quotes in Brazil limited the decline in sugar prices compared to the previous month.