The FAO Food Price Index, which tracks changes in international prices for key food commodities, stood at 126.4 points, which is 1.6% lower compared to September.
The decline in grain prices was 1.3% compared to the previous month, with all major types of grains becoming cheaper. In particular, the price of wheat fell by 1%, while rice dropped by 2.5%.
The meat price index decreased by 2%, primarily due to a sharp drop in prices for pork and poultry. At the same time, the price of beef continued to rise, partly due to high quotations for Australian products amid stable global demand.
The dairy price index fell by 3.4% in October, driven by a sharp decline in butter prices, which was caused by high export volumes from the European Union and New Zealand. The price of skim milk powder also decreased due to high competition among exporters and limited import demand.
The cost of sugar fell by 5.3% compared to September, reaching its lowest level since December 2020. This decline is linked to high production levels in Brazil and an expected increase in export stocks in Thailand and India.
In contrast, the vegetable oil price index increased by 0.9%, reaching its highest value since July 2022. The rise in prices for palm, rapeseed, soybean, and sunflower oils occurred due to a number of factors, including delays in harvesting in the Black Sea region.
The FAO Food Price Index is a monthly indicator reflecting changes in international prices for a basket of food commodities. It is based on a weighted average of price indices for five main categories of goods: grains, vegetable oils, dairy products, meat, and sugar. The index is calculated as the average of these indices, taking into account their share in total export volume over a specific period.
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