World Food Commodity Prices Ease in December; Still Higher for the Year

World food commodity prices edged lower in December – but remained higher for 2025 - as declines in vegetable oils, dairy products and meat more than offset firmer prices for cereals and sugar, according to the Food and Agriculture Organization (FAO) of the United Nations. 

Released Friday, the monthly FAO Food Price Index - which tracks monthly changes in the international prices of a set of globally traded food commodities - averaged 124.3 points in December, down 0.6% from November and 2.3% below its level a year earlier.  

Despite the late-year softening, the index averaged 127.2 points for all of 2025, up 4.3% from 2024, reflecting higher prices for vegetable oils and dairy products over much of the year (see graphs below). 

Cereal markets were one of the main sources of upward pressure in December, with the FAO cereal price index rising 1.7% month over month to 107.3 points. International wheat prices found some support from renewed concerns over Black Sea export flows, but gains were limited by ample global supplies. Confirmation of large wheat crops in Argentina and Australia reinforced the broader bearish tone, keeping prices under pressure despite geopolitical risks. 

Coarse grains showed more strength. World corn prices were boosted by robust export demand and strong domestic ethanol production in both Brazil and the US, tightening near-term availability, the FAO said. Sorghum prices also moved higher in tandem with corn, while rice prices rose more sharply, with the FAO all rice price index jumping 4.3% in December.  

On an annual basis, however, cereals remained lower priced than a year earlier. The FAO cereal price index averaged 107.9 points in 2025, down 4.9% from 2024 and marking its lowest annual level since 2020. Rice prices, in particular, averaged 35.2% lower year over year, weighed down by ample exportable supplies, intense competition among exporters and reduced buying from some Asian importers.