Global food commodity prices declined overall in October, driven mainly by ample global supplies, according to the benchmark indicator released on Friday by the Food and Agriculture Organization of the United Nations (FAO).

The FAO Food Price Index, which tracks monthly changes in the international prices of a range of globally traded food commodities, averaged 126.4 points in October, down 1.6 percent from its revised September level.

Cereal prices fell 1.3% from September, with declines recorded for all major grains. The Wheat Price Index fell 1.0%, the Coarse Grains Index 1.1%, and the FAO All-Rice Price Index 2.5%.

Meat prices fell 2.0% in the month, driven by sharp declines in pork and poultry prices. Beef prices, however, continued to rise, driven by higher quotations from Australia due to strong global demand.

Dairy product prices fell more significantly, dropping 3.4% in October, driven by a sharp decline in butter prices due to ample export availability from the European Union and New Zealand. Milk powder prices also fell, due to limited import demand and strong export competition.

The Sugar Price Index fell 5.3% from the previous month, reaching its lowest level since December 2020, driven by solid production in Brazil and higher expected production in Thailand and India. Falling crude oil prices also put further downward pressure on global sugar prices, due to lower demand from the biofuel sector.

The only food commodity to buck the trend was vegetable oils, whose prices rose by 0.9%, reaching their highest level since July 2022. Prices for palm, rapeseed, soybean and sunflower oils all rose, due to a number of factors, including biofuel obligations and harvest delays in the Black Sea region.