Commodities
Food Price Index Hits Near Four-Year High Amid El Nino Concerns and Black Sea Disruptions
The FAO Food Price Index rose to a near four-year high in September, driven by gains in cereals, sugar, and vegetable oils. The index averages 136.0 points, up from 134.0 in August, marking the highest level since November 2022.
International sugar prices hit an 18-month high, while wheat futures reached a three-year peak due to El Nino concerns and war-related disruptions in Black Sea trade. FAO Chief Economist Maximo Torero warns that these pressures will pass through to consumer food prices, particularly in countries reliant on imports.
The FAO maintains its forecast for global cereal production in 2026 at 2.979 billion metric tons but lowers the world cereal trade forecast by 0.7% due to weaker Black Sea exports.