FAO Food Price Index Jumps 5.8% Amid Cereal Market Pressure

The global food market has become increasingly fragile in September as cereal prices surge and trade slows. The FAO Food Price Index rose 1.5% from August and 5.8% from a year earlier to 136.0 points, with most of the upward momentum coming from crop markets.

Cereal markets are absorbing the sharpest pressure, with the FAO Cereal Price Index rising 5.1% in September and standing 17.2% above its level a year earlier. Wheat prices climbed 6.3%, maize rose 5.6%, and rice increased 1.4%. The pressure is due to simultaneous factors such as production risks, export availability, and transport constraints.

Uncertainty over shipping through the Strait of Hormuz added further support to prices for biofuel feedstocks like maize. Global cereal output in 2026 is forecast at 2.979 billion tonnes, down 2.1% from 2025, but production remains high.