FAO Food Price Index Hits Multi-Year High on Wheat and Maize Surge
The FAO Food Price Index rose 1.5% in September to its highest level since March 2022, driven by surging wheat and maize prices.
The index averaged 136 points for the month, surpassing August's revised reading of 134 points. On a yearly basis, the index is 7.4 points stronger, or 6% higher, but still lags behind its March 2022 peak by 24.3 points, or 15%.
The Cereal Price Index climbed to 122.8 points in September, up 5% from August and 17% above the same period last year. Global wheat quotations reached a three-year high, while maize values jumped almost 6% month over month to their highest level since 2023.
The FAO attributed the wheat price surge to logistical bottlenecks in the Black Sea region and dry conditions in North America before winter wheat sowing. Maize prices rose due to tighter supply and weaker-than-expected U.S. yields, as well as diminished Brazilian export volumes.