Global Food Prices Hit Nearly Four-Year High in September, FAO Reports
The UN's Food and Agriculture Organization reported that its Food Price Index averaged 136.0 points in September, the highest since November 2022, driven by logistics disruptions in the Strait of Hormuz and Black Sea alongside El Niño weather concerns.
Global food prices climbed to their highest level in nearly four years in September, according to the United Nations' Food and Agriculture Organization (FAO). The FAO Food Price Index averaged 136.0 points last month, up from a revised 134.0 in August, marking the highest reading since November 2022.
FAO Chief Economist Maximo Torero stated that disruptions in the Strait of Hormuz and the Black Sea combined with climate shocks are putting pressure on energy, transport, and key food commodities. These persistent build-ups in global commodity prices threaten potential pass-through to consumer food prices, especially in import-dependent countries.
International sugar prices reached an 18-month high due to fears about a severe El Niño weather pattern. The FAO’s sugar price index jumped 6.1 per cent from August, marking a third consecutive monthly increase. Meanwhile, wheat futures reached a three-year peak early last month due to a war-related collapse in Black Sea trade. The FAO’s cereal price benchmark rose 5.1 per cent on the month due to reduced yield prospects for US corn and disruptions to Black Sea grain trade.
Vegetable oil prices edged up 0.9 per cent, driven by palm oil demand and El Niño-related production risks in Southeast Asia. In contrast, the FAO’s overall meat index eased 1.1 per cent, reflecting lower poultry prices linked to new EU import rules reducing demand.
Looking ahead, the FAO kept its forecast for global cereal production in 2026 almost unchanged at 2.979 billion metric tons. This figure is 2.1 per cent below the previous year’s peak but still represents the second-largest harvest on record. However, the agency cut its forecast for world cereal trade in 2026-27 by 0.7 per cent from last month due to lower wheat and maize export expectations amid constrained Black Sea shipping.