FAO Food Price Index Rises Amid Transport Disruptions and Weather Concerns

The FAO Food Price Index rose in September due to transportation disruptions and weather concerns that constrained availability. The index averaged 136.0 points, up 1.5 percent from August and 5.8 percent from a year ago.

The FAO Cereal Price Index increased by 5.1 percent from August, while the FAO All Rice Price Index rose by 1.4 percent. The FAO Vegetable Oil Price Index also increased, driven by higher world palm oil prices associated with strong global import demand and concerns over production prospects in Southeast Asia.

The FAO Meat Price Index declined by 1.1 percent, while the FAO Dairy Price Index dipped by 0.1 percent. The FAO Sugar Price Index, however, increased by 6.1 percent from August due to expectations of tighter global sugar supplies in the 2026/27 season.

The FAO forecasts global cereal production and trade to decline, with a 2.1 percent drop in global cereal production this year. World cereal stocks are expected to remain unchanged at 950 million tonnes, while world cereals stocks-to-use ratio is forecast to slightly decrease from the previous season's level.