Food Prices Soar as Cereal Markets Absorb Pressure

Global food markets have entered a more unstable phase as cereal and sugar prices surged in September. The FAO Food Price Index rose to 136.0 points, up 1.5% from August and 5.8% from the same period last year.

The increase was largely driven by crop markets, where production risks, export availability, and transport constraints are converging. Cereal prices jumped 5.1%, with wheat, maize, and rice all experiencing upward pressure.

Wheat prices rose 6.3% due to logistical issues in the Black Sea region and dry weather in North America ahead of sowing. Maize prices increased 5.6% amid concerns over US yields and reduced export availability from Brazil.

The FAO Cereal Price Index has reached a level 17.2% higher than last year, reflecting simultaneous pressure across key traded staples. Global cereal output is forecast at 2.979 billion tonnes in 2026, down 2.1% from the previous year.