Global Food Prices Hit Four-Year High Amid Supply and Weather Concerns

The United Nations’ Food and Agriculture Organization (FAO) reported that world food prices reached their highest level in nearly four years in September 2026. The FAO Food Price Index averaged 136.0 points, up from 134.0 in August, driven by logistics disruptions and weather concerns affecting crop markets.

FAO Chief Economist Maximo Torero highlighted that disruptions in the Strait of Hormuz and the Black Sea, combined with climate shocks, are increasing pressure on energy, transport, and key food commodities. He warned that if these pressures persist, consumer food prices, especially in import-dependent countries, will soon rise.

The sugar price index surged 6.1% from August, marking its third consecutive monthly increase due to adverse weather threatening supply in major production zones. Meanwhile, the cereal price benchmark rose 5.1%, with reduced yield prospects for US corn and disruptions to Black Sea grain trade contributing to the increase.

Vegetable oil prices edged up 0.9%, primarily driven by palm oil demand and concerns over El Nino-related production risks in Southeast Asia. In contrast, the overall meat index eased 1.1%, reflecting lower poultry prices linked to a drop in European Union demand due to new import rules.

In a separate report, FAO maintained its forecast for global cereal production in 2026 at 2.979 billion metric tons, slightly below the previous year’s peak but still the second-largest harvest on record. However, the agency cut its forecast for world cereal trade in 2026/27 by 0.7%, citing lower wheat and maize export expectations amid constrained Black Sea shipping.