The FAO Food Price Index fell to 120.6 in October 2023, the lowest since March 2021, compared to a downwardly revised 121.3 in September. Prices declined for sugar (-2.2%), mainly driven by strong production in Brazil, despite the negative impact of rains on sugarcane crushing in the first half of October. The cost of cereals dropped 1%, mainly due to a 1.9% fall in wheat, reflecting generally higher-than-earlier-anticipated supplies in the US and strong competition among exporters. Vegetable oil prices fell 0.7% as lower palm oil prices more than offset the higher cost of soy, sunflower, and rapeseed oils. Also, meat prices edged 0.6% lower as pig meat prices fell for the third consecutive month, amid persistently sluggish import demand, especially from some East Asian countries. In contrast, dairy prices rebounded (2.2%) after nine consecutive declines, as milk powder prices increased the most, mainly due to import demand for both near and longer-term supplies.
