Global Food Prices Ease September Amid Lower Sugar Dairy Costs

The Food and Agriculture Organization (FAO) of the United Nations reported a slight decline in the global Food Price Index in September 2025, averaging 128.8 points down from 129.7 in August, despite being 3.4% higher than the previous year. The decrease was driven primarily by lower prices in sugar and dairy, with sugar prices falling to their lowest levels since March 2021 due to higher-than-expected production in Brazil and favorable harvests in India and Thailand. Dairy prices also declined for the third consecutive month, notably with a significant drop in butter prices amid increased production in Oceania. Meanwhile, cereal prices fell modestly with wheat prices declining for the third straight month due to large harvests and subdued demand, and corn prices pressured by export tax suspensions in Argentina. Vegetable oil prices decreased slightly due to lower palm and soybean oil prices offsetting gains in sunflower and rapeseed oil, whereas meat prices rose to a new record high, supported by strong demand and limited supply, particularly in the US. The FAO also raised its global cereal production forecast for 2025 to 2.971 billion metric tons, marking the largest annual increase since 2013.