FAO food price index almost did not change in August
Benchmark the price of world food commodities mostly did not change in August, because the increase in the price of meat, sugar and vegetable oil balanced the decline in cereal and milk quotes, according to new reports issued by the UN Food and Agriculture Organization (FAO) Friday.
The FAO food price index, which tracks monthly changes in international prices from a series of food commodities that are traded globally, on average 130.1 points in August, slightly rose from the revised July 130.0 points and 6.9 percent higher than the previous year.
The FAO vegetable oil price index increased by 1.4 percent in August from July, reaching the highest level in more than three years. Palm oil quotes, sunflowers, and rapeseed are all increasing, some are influenced by Indonesia’s intention to further enhance the mandate of the biodiesel mixture next year, while the price of world soybean oil rises lower in the midst of prospects for adequate global soybean supply in the upcoming marketing year.
The FAO cereal price index decreased 0.8 percent from July. The price of international wheat fell, driven by a larger harvest in the European Union and the Russian federation, while the price of world corn rose, in part due to an increase in demand for the use of feed and ethanol production in the United States. The price index of all FAO rice subsides, burdened by lower indica prices in the midst of continuous competition between exporters.
The FAO meat price index increased 0.6 percent in August, reaching the highest of all time, led by an increase in the price of Bovine International meat, supported by strong demand in the United States and strong import demand from China, each of which encouraged Australian and Brazilian export quotes. Ovine prices also rise, the price of pork remains widely stable, while poultry meat quotes decrease in the middle of the exported inventory from Brazil.
The FAO milk price index decreased by 1.3 percent from July, with butter, cheese and pure powder milk quotes in the midst of imported imports from the main Asian market.
The FAO sugar price index rose slightly, by 0.2 percent from July after five consecutive declines, driven mainly by concerns over sugar cane production and results in Brazil, as well as stronger global import demand. Prospects for larger plants in India and Thailand contain price increases. Abundant Corn Estimation for the coming year
FAO also released on Friday new estimates for global cereal production in 2025, now pegged at 2 961 million tons – the highest record new and 3.5 percent above last year’s level.
The supply and request of a new cereal that links the revision upward with a significant increase in the estimated corn output for Brazil and the United States. Global production of rough seeds, which includes corn, is now expected to reach 1 601 million tons, an increase of 5.9 from 2024, including an increase in the famous output.
Meanwhile, the FAO cut estimates for world wheat output to 804.9 million tons, it still rose around 0.8 percent from last year. This new forecast includes lower yield prospects driven by weather in China and higher results in the European Union. World rice production, on the other hand, is expected to increase by 1.0 percent to the highest record of 555.5 million tons, with expansion in Bangladesh, Brazil, China, India, and especially Indonesia is expected to compensate for the anticipated decline in Madagascar, Nepal, the United States in America and Thailand.
Utilization of the total world cereal in 2025/26 is now expected to increase to 2 922 million tons, up 1.6 percent from the previous year, led in part by the estimated increase in the use of corn and wheat for animal feed and aquaculture.
Global cereal shares are expected to develop by 3.7 percent at the end of 2026 to reach the highest record of 898.7 million tons. Based on new estimates, the Global Cereal-Stock-to-Use ratio in 2025/26 is estimated to reach 30.6 percent, almost one point percentage higher than the previous season, confirming the prospects of a convenient supply globally.
The new FAO forecast also includes an annual increase of 1.4 percent in international cereal trade, now it is estimated that it will reach 493.4 million tons. This growth is supported by exported corn supply expectations, strong demand for wheat from China, Pakistan, Syrian Arab Republic and Türkiye, and estimated imports to the top for rice for Bangladesh, Ghana and Guinea-Bissau.
The Agricultural Market Information System (Amis), organized by the FAO, also issued its monthly market monitor on Friday. In addition to regular market updates, the report records the price of nitrogen fertilizer fertilizer and warns that fertilizer is less affordable compared to the price of plants in many areas, which can affect the level of application.
Source: Food and Agriculture Organization (FAO)
