Global food prices hit three-year high as heatwaves and conflict push up cost of crops – business live

Breaking news: Global food commodity prices have surged to a three-year high, driven by the ongoing conflict in Ukraine, the Middle East, and scorching temperatures affecting crop yields. The United Nations’ Food and Agriculture Organization (FAO) Food Price Index has reached its highest level since January 2023. This surge in prices is evident in the increase in international sorghum prices, mirroring the rise in maize prices in the United States.

Conversely, barley prices have dipped by 1.9 percent, thanks to favorable crop prospects in Australia and the Black Sea region, which have outweighed the heat-induced yield losses in the European Union.

Meanwhile, the FAO All Rice Price Index has remained relatively stable in July 2026. This stability is attributed to a slight rise in Indica quotations being balanced by a decline in demand-driven prices for other major rice varieties. However, the story does not end here. Despite the relatively stable house prices, which have remained within a narrow range since November 2024, currently sitting 0.5% above their level in November 2024, affordability remains a significant issue for potential buyers.

The recent events in the Middle East have led to a rise in mortgage rates, even as they had earlier eased during the summer.