Global food prices climbed to their highest level in nearly four years in September, with weather concerns, logistics disruptions and tensions affecting major commodity markets, according to the United Nations' Food and Agriculture Organization (FAO).
According to Rueters, the FAO Food Price Index, which tracks international prices of a basket of key food commodities, averaged 136.0 points in September, up from a revised 134.0 in August. The report said that it was the index's highest reading since November 2022.
FAO Chief Economist Maximo Torero said the rise reflected a broader increase in commodity prices as disruptions around the Strait of Hormuz and the Black Sea coincided with climate-related shocks.
“If sustained, these pressures will soon pass through to consumer food prices,” Torero said, particularly in countries that depend heavily on imports of food and energy.
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Reuters reported that sugar recorded the sharpest increase among the major food categories tracked by the FAO. Its price index jumped 6.1% from August, marking a third consecutive monthly rise and taking international sugar prices to an 18-month high.
The increase came as adverse weather conditions raised concerns about supplies from major producing regions, while fears of a severe El Niño weather pattern added to uncertainty over future production.
Cereal prices also rose sharply. The FAO's cereal price benchmark increased 5.1% month-on-month, as weaker prospects for US corn yields added to concerns arising from disruptions to Black Sea grain shipments.
Wheat futures had climbed to a three-year high earlier in September amid concerns over the impact of war-related disruptions on Black Sea trade, Reuters reported.
Vegetable oil prices increased more modestly, rising 0.9% in September. The gain was led by palm oil, supported by firm demand and concerns that El Niño-related weather conditions could affect production in Southeast Asia.
Meat prices, meanwhile, moved in the opposite direction. The FAO meat index fell 1.1%, partly due to lower poultry prices. The decline was linked in part to weaker European Union demand following the implementation of new import rules.
In a separate report, the FAO kept its estimate for global cereal production in 2026 broadly unchanged at 2.979 billion metric tonnes. That would be 2.1% below the previous year's record harvest but still the second-largest crop on record.
However, the agency lowered its forecast for global cereal trade in the 2026/27 season by 0.7% from its previous estimate.
The revision reflects lower expectations for wheat and maize exports, particularly as shipping through the Black Sea faces continued constraints.
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