World food prices fall for second consecutive month in October, UN's FAO says

LONDON, Nov 7 (Reuters) - World food commodity prices fell for a second consecutive month in October, driven largely by ample global supplies, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 126.4 points in October, down from a revised 128.5 in September.

The index was down slightly compared to its October 2024 level and stood 21.1% below its March 2022 peak.

It had climbed to a two-year peak in July before stabilising in August and dropping in September thanks largely to sugar price falls.

The FAO's sugar index fell again in October, dropping 5.3% to its lowest since December 2020, amid strong output in Brazil, anticipated output growth in Thailand and India, and lower crude oil prices.

The dairy price index also fell, slumping 3.4% from September thanks to weaker milk powder quotations and lower butter prices, which dropped due to ample export availability from the European Union and New Zealand.

The meat index eased 2% in October after eight monthly gains, with pig and poultry prices dropping sharply, but bovine prices continuing to head higher thanks to strong global demand.

Vegetable oils rose 0.9%, reaching their highest since July 2022.

In a separate report, the FAO forecast 2025 world cereal production at a record 2.990 billion metric tons, after projecting 2.971 billion tons last month.

The latest outlook was up 4.4% from 2024 output, with all major cereals expected to rise and both maize and rice output set to hit record highs.