Meat costs hit report excessive on robust US beef demand
3 October 2025
1 minute learn
World meals commodity costs dipped in September as declines in sugar and dairy offset a brand new peak for meat costs, Reuters reported, citing the United Nations’ Meals and Agriculture Organisation on Friday.
The FAO Meals Value Index, which tracks a basket of internationally traded meals commodities, averaged 128.8 factors in September, down from a revised 129.7 in August.
The index was up 3.4% on the identical month final 12 months, although almost 20% down from a report degree in March 2022 following Russia’s full-scale invasion of Ukraine.
Lowest sugar costs since March 2021
The indicator, which had climbed to a two-year peak in July earlier than stabilising in August, was curbed final month by a 4.1% drop for FAO’s sugar value index, which reached its lowest since March 2021.
The autumn for sugar mirrored an enhancing provide outlook, with greater than anticipated manufacturing in Brazil and beneficial harvest prospects in India and Thailand, FAO mentioned.
The company’s dairy value index slipped 2.6% month on month, pushed in flip by a pointy decline in butter costs amid elevated manufacturing prospects in Oceania.
FAO’s cereal benchmark noticed a 0.6% decline from August, with wheat costs dropping for a 3rd straight month resulting from massive harvests and subdued worldwide demand.
Maize costs additionally decreased, partly pressured by a short lived suspension of export taxes in Argentina.
The company’s rice index additionally confirmed a month-to-month fall as decreased orders by consumers within the Philippines and Africa weighed.
US beef market drives report meat costs
Vegetable oil costs fell by 0.7% as decrease palm and soybean oil quotations offset will increase for sunflower and rapeseed oil.
In distinction, FAO’s meat value indicator rose by 0.7% to a brand new report excessive as beef and sheep meat quotations rose.
Beef costs additionally reached a brand new peak, supported by robust demand within the US amid restricted home provide.
In a separate report, the FAO elevated its forecast for world cereal manufacturing in 2025 to 2.971 billion metric tons from 2.961 billion tons projected final month.
The newest outlook was up 3.8% from 2024 output, marking the biggest annual enhance since 2013, it mentioned.
The upward revision was attributed to greater manufacturing prospects for wheat, maize and rice.
