World food prices near four-year high in September, UN says
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The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, averaged 136.0 points in September.
PHOTO: REUTERS
- World food prices reached their highest level in nearly four years in September due to logistics issues and weather concerns, as reported by the UN's Food and Agriculture Organization (FAO).
- Sugar prices hit an 18-month high and wheat futures peaked at a three-year high, driven by El Nino fears and disruptions in Black Sea trade.
- FAO forecasts global cereal production for 2026 to be slightly lower than in 2025 but still the second-largest ever, while world cereal trade is expected to decline due to shipping constraints.
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PARIS – World food prices rose in September to their highest in nearly four years as logistics disruptions and weather concerns affected crop markets, the United Nations’ Food and Agriculture Organization (FAO) said.
Fears about a severe El Nino weather pattern have pushed international sugar prices to an 18-month high, while a war-related collapse in Black Sea trade pushed wheat futures to a three-year peak early in September.
The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, averaged 136.0 points, up from a revised 134.0 for August and the highest reading since November 2022.
FAO’s benchmarks for cereal, sugar and vegetable oil prices all rose in September, though meat and dairy quotations fell.
“We are seeing a persistent and increasingly broad-based build up in global commodity prices, as disruptions in the Strait of Hormuz and the Black Sea combine with climate shocks, putting pressure on energy, transport and key food commodities,” FAO chief economist Maximo Torero said.
“If sustained, these pressures will soon pass through to consumer food prices, especially in food and energy import-dependent countries,” he said in a statement.
In a separate report, FAO kept its forecast for global cereal production in 2026 almost unchanged at 2.979 billion metric tons, 2.1 per cent below the previous year’s peak but still the second-largest harvest on record.
FAO cut its forecast for world cereal trade in 2026/27 by 0.7 per cent from September, citing lower wheat and maize export expectations due largely to constrained Black Sea shipping routes. REUTERS