Global Food Prices Hit Four-Year High Amid Weather and Trade Disruptions

Global food prices surged in September to their highest level in nearly four years, driven by logistics disruptions and weather-related concerns. The United Nations’ Food and Agriculture Organisation (FAO) reported that the FAO Food Price Index averaged 136.0 points, up from a revised 134.0 in August, marking the highest reading since November 2022.

Sugar prices reached an 18-month high due to fears of a severe El Niño weather pattern, while wheat futures hit a three-year peak early last month amid war-related disruptions in Black Sea trade. FAO chief economist Maximo Torero warned that sustained pressures could soon drive up consumer food prices, particularly in import-dependent countries.

The FAO’s sugar price index rose 6.1% from August, reflecting supply concerns in major production zones. Cereal prices climbed 5.1%, influenced by reduced US corn yield prospects and Black Sea grain trade disruptions. Vegetable oil prices edged up 0.9%, driven by palm oil demand and El Niño-related production risks in Southeast Asia.

Meanwhile, the FAO’s meat index dipped 1.1%, primarily due to lower poultry prices linked to new import rules in the European Union. In a separate report, the FAO maintained its forecast for global cereal production in 2026 at 2.979 billion metric tonnes, slightly below the previous year’s peak but still the second-largest harvest on record. The agency also 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.