The FAO food price index, which monitors globally traded commodities, reached 130.3 points last month. A 3.5% drop in cereal prices led the decline, fueled by robust wheat harvests in the Black Sea region and strong maize output in South America. Lower oil prices also played a role, reducing the incentive for farmers to divert crops toward biofuel production. Sugar saw a significant 5.7% decrease as Brazilian sugarcane supplies stabilized, while dairy costs eased by 1.5% due to improved production levels in the United States and European Union.

Contrasting these trends, meat prices climbed 0.5% to reach a new record high, driven by persistent demand for poultry in Brazil. Vegetable oil prices also rose by 3.8%, reflecting heightened anxiety over palm oil supplies in Indonesia. Meteorologists warn that the emerging El Nino could trigger droughts and erratic rainfall, potentially crippling sugar crops in India and Thailand while stressing palm oil cultivation. Australian wheat production is already projected to fall below its five-year average, underscoring the fragility of the current supply landscape despite the recent cooling of commodity costs.