The benchmark of world food commodity prices declined slightly in September, led by drops in the sugar and dairy price indices, according to the new report released by the Food and Agriculture Organization of the United Nations (FAO) Friday.
The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 128.8 points in September, versus a revised August level of 129.7 points. The September reading represents a 3.4 percent increase from a year ago.
According to the report, the FAO Sugar Price Index averaged 99.4 points in September, down 4.2 points (4.1 percent) from August and as much as 26.9 points (21.3 percent) from a year ago, reaching its lowest level since March 2021 (96.2 points). The drop was driven by higher-than-expected sugar production in Brazil, resulting from large crushing volumes and increased use of sugarcane for sugar production in key southern growing regions. Additional downward pressure on prices came from favourable harvest prospects in India and Thailand, following ample monsoon rains, combined with expanded plantings.
The FAO Dairy Price Index averaged 148.3 points in September 2025, marking its third consecutive monthly decline, down 2.6 percent from August while remaining nearly 9 percent above its level a year earlier. All sub-indices eased, with butter falling by 7.0 percent, skim milk powder by 4.3 percent, and whole milk powder by 3.1 percent, while cheese quotations eased only slightly. The relatively sharp drop in butter prices reflected a seasonal increase in cream availability as demand for ice-cream in the Northern Hemisphere waned, alongside higher production expectations in New Zealand as the spring flush advances. Nevertheless, despite this fall, butter prices remained 6.3 percent above the 2024 average. Milk powder quotations decreased mainly on softer demand from key importers and firmer export competition. By contrast, cheese prices declined only marginally, as a modest easing in the European Union amid steady output and softer export interest was partly offset by firmer quotations in Oceania, where smaller early-season supplies and stronger demand from Asian buyers supported New Zealand prices.
The FAO Cereal Price Index averaged 105.0 points in September, down 0.6 points (0.6 percent) from August and 8.5 points (7.5 percent) below its September 2024 level. World wheat prices declined for the third consecutive month in September, largely due to subdued international demand and confirmation of large harvests in the Russian Federation and other key producing countries in Europe and Northern America. Maize prices also dropped, on forecasts of abundant supplies in exporting countries Brazil and the United States of America, while the temporary suspension of grain export taxes in Argentina also weighed on maize quotations. Among other coarse grains, world prices of both barley and sorghum rose, with barley prices recording a third consecutive monthly increase. Meanwhile, the FAO All Rice Price Index fell by 0.5 percent in September 2025 led by declines in Indica quotations, as ample exportable supplies and reduced purchase orders by buyers in the Philippines and Africa weighed on the market.
