FAO Food Price Index Rises Amid Weather Disruptions and Geopolitical Tensions

Global food prices rose in July 2026, according to the FAO Food Price Index, which increased by 0.6% from June. The index was driven by higher cereal, vegetable oil, and sugar prices due to weather disruptions, energy market volatility, and geopolitical tensions.

The FAO Cereal Price Index rose 3.4% in July, with wheat prices climbing 5.8% amid concerns over continued disruptions to grain exports through the Black Sea and damage to export infrastructure. Maize prices also strengthened, rising 3.6%, due to hot and dry conditions in parts of the US Corn Belt.

Vegetable oil prices reached their highest level since June 2022, with the FAO Vegetable Oil Price Index increasing by 2% to 195.7 points. Palm and soybean oil prices were higher, while sunflower and rapeseed oil prices declined due to expectations of larger supplies in the 2026/27 season.

Sugar prices also rose, with the FAO Sugar Price Index increasing by 5.6% in July. The increase was attributed to concerns over persistent hot and dry weather in the European Union and the potential impact of El Niño-related conditions on sugar production in major Asian producers.