World food prices fall for the second consecutive month, according to the FAO report

By Jim Wyckoff The FAO Food Price Index averaged 126.4 points in October, down from the revised 128.5 points in September, representing a slight year-on-year decline and standing 21.1% below its peak in March 2022. Sugar led the decline, with its sub-index dropping 5.3% to its lowest level since December 2020, reflecting strong production in Brazil, higher production forecasts in Thailand and India, and weakness in crude oil prices. Dairy prices fell 3.4%, driven by lower prices for milk powder and butter amid strong export availability from the EU and New Zealand. Poultry and pig meat prices also dropped 2%, ending eight months of increases, although beef prices remained firm amid continued global demand. Conversely, vegetable oils rose 0.9%, reaching ...